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What is the right thing to do when you're looking at financials in other than US$? Use the later exchange rate to convert all the data (like you apparently did), or use the exchange rate as of the date of the data (like I did)? Why?

Technically, under FAS 52 of GAAP, the income statement is translated at the average exchange rate for the year, the balance sheet other than the equity section is translated at the year end rate. The equity section is translated using a combination of historical rates and current year rates (e.g., net income from the current income statement). This leads to an imbalance when the balance sheet is translated, which is solved by plugging in an amount called current year translation adjustment.

So, from that aspect, you really can't translate foreign financials simply into dollars. As a matter of fact, I don't usually do that, especially if EURO figures are available. While you might get some difference in the net cash section of the Ranker, I prefer to just leave the financials in the local currency and not translate them at all as to the accountant in me, the translation isn't meaningful anyway as the way you translate, for example, Nokia's balance sheet into dollars isn't the same as a US based company translates the financials of its foreign subs into dollars when consolidating.

Phil


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