“Currency impacts are a global phenomenon and no geographic region is immune, demonstrated by the massive increase in European headwinds from last quarter,” said Melissa Di Donato, Chair and CEO at Kyriba. “This data is a clear signal to global organizations with significant overseas exposure that currency volatility continues to erode value. Quantifying the impacts of FX on their businesses is critical for CEOs and CFOs to execute data-driven risk management programs.”

Highlights from the November 2023 Kyriba Currency Impact Report include:

• Publicly traded North American companies reported $14.43 billion in headwinds.

  • Down 32% from last quarter

• Publicly traded North American companies reported $7.52 billion in tailwinds.

  • Up $7.46M from last quarter.

• The average earnings per share (EPS) impact reported by publicly traded North American companies in Q2 2023 was $0.05.

  • Down $0.01 from last quarter.

• Publicly traded North American companies indicated the Canadian dollar (CAD) as the most impactful currency, with 44.4% of companies referencing it as impacting revenues; the euro (EUR) was second at 22.2%, and the Chinese yuan (CNY) was third with 16.7% of North American companies identifying it as impactful.

• The euro was cited as one of the most impactful currencies by publicly traded European companies on earnings calls.

• The top five industries that experienced the greatest impact from currencies in North America were (in ranked order): machinery, trading & distribution, auto components, electronic equipment, instruments & components, healthcare equipment & supplies, and construction & engineering.

“CFOs have a long way to go to cost effectively manage FX risk to protect balance sheets, earnings and cash flow from currency swings,” shared Di Donato. “Staying vigilant for the remainder of the year and into next year should be a top priority to mitigate the currency effects from geo-political events, economic volatility and financial market concerns.”

To learn more about FX impacts to specific industries and which currencies were most impactful to multinationals, download the November 2023 Kyriba Currency Impact Report.