Post by
nozzpack on May 03, 2023 7:58am
Big Gains in Foreign Exchange in Q1/23
In Q1 of 2022, RET had a forex gain of $1.85 m.
It had $ 25 million in cash at entry to Q1/22 and the USD was 1,26 that of Loonie .
So that CAD cash was worth about $18 million in USD of which the forex gain was $1.85 or 10
RET had $103 million in cash at entry to Q1 of 2023, a ratio of 4 times its cash holdings in Q1 of 2022.
At constant currency , the forex gain in Q1 of 2023 would be $1.85 ** 4 = $7.50 million CAD.
But, that $75 million at US Q1 23 forex of 1.35 is now worth about 4% more which is $3.0 million
So total forex gain in Q1 of 2023 should be in the $10 million range.
Forex gains upon conversion is real gains which add to the cash position.
Please check my calculations to ensure accuracy
Comment by
savyinvestor333 on May 03, 2023 8:07am
Why are you assuming all the cash is held in U.S. dollars?
Comment by
nozzpack on May 03, 2023 10:14am
Most of not all of it is. You will note though that I have standardized the Forex gains in 2022 to the USD. The assumption is that whatever currency the cash was in during Q1 of 2022 , the 2023 Q1 cash was in the same currency . That would seem to be a solid assumption as no other currency gained in value but the USD in the past year.....so where else would you store your cash ..