For successful FX management, it is essential to understand how FX risks affect your company. We help our customers analyse the effects of various types of FX risks (transaction and translation risk, economic risk) on the income statement and balance sheet.
Knowing your company’s risk-bearing capacity and the various types of FX risks provides an important basis for subsequent hedge decisions. When choosing a hedge strategy for future and existing contractually fixed transactions, it is important to consider the effects of exchange rate fluctuations on performance indicators such as the margin and EBIT. For the translation of balance sheet items in foreign currencies, we focus our analysis on how exchange rate fluctuations affect the consolidated equity and equity ratio.