E-commerce · Cross Border
Currency exposure
Published · Reviewed by The Diligence Standard Team · Updated
Purchase, freight and marketplace cash flows in different currencies can distort historical margin and cash needs.
Records to reconcile
- Currency-level transactions
- Hedging and pricing policy
- Supplier payment terms
Warning signal
Management evaluates margin at spot rates unrelated to actual cash conversion.
Transaction impact
Future contribution and working capital can vary materially.
Response
Rebuild realized rates and stress open exposures.