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How to convert foreign financial statements to USD?

Personal Finance & Money Asked by max d on January 17, 2021

I have a company I am researching and want to do DCF analysis on, however this is a Canadian company and the financial statements are in CAD. I tried looking all over the internet for those financial statement that are already converted into USD and found one on macrotrends, however when I converted the financial statements myself from CAD to USD I got different numbers than what’s published on macrotrends and I can’t figure out why. The numbers are not super different, but different enough (up to around an 8% difference) to warrant looking further into. I don’t know which numbers to trust, my own or the ones on macrotrends, since either I did the conversion calculation incorrectly or because sometimes different sources of financial information is slightly off (as I noticed before with other research I’ve done).

The way I converted the financial statements was by looking at the exchange rate of the CAD to the USD at that moment in time (to account for fluctuation) and multiplying the financial statement numbers by that ratio for that particular year. I went back 5 years in time when doing the conversions.

Am I missing something? Did I do it incorrectly, any constructive advice or information will be appreciated.

Edit: (By the way this stock does trade on the NYSE)

Edit 2: What’s even more curious is I actually found another online source that has the financial statements in USD but it’s different from both my calculations and macrotrends, again the difference is slight but still present.

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