# How to convert foreign financial statements to USD?

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.

• 20% difference in exchange rate or final values? Commented Nov 7, 2020 at 3:07
• @Hart CO, my mistake it's actually a difference of 8% in final values. Meaning my calculated final value is 8% smaller than the final value on macrotrends. Commented Nov 7, 2020 at 3:40
• I don't know what the convention is for the analysis you're doing, but I know that in some situations an average exchange rate is used for the reporting period or spot rate at end of period. 8% seems like a bit much to be accounted for by different exchange rate methodology. Commented Nov 7, 2020 at 4:53
• Not an investor at all, but why do you want to change the value to USD? It just introduces noise, except in the case when the company assets are linked to USD (e.g. they have bank accounts in USD). It seems to me that the conversion would only mean that you are evaluating the conversion rates of USD/CAD and not how well the company is doing. Commented Nov 7, 2020 at 21:25
• Why do you want to convert the financial statements to USD?
– TDo
Commented Oct 2, 2021 at 0:47