{
  "docId": "019dd923-622c-750b-8b97-9fb7a842e09f",
  "docSlug": "cddb6c0b289f",
  "documentTitle": "Eurofins Scientific SE (ERF)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-06-24 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 22,
  "pageCount": 36,
  "prevPage": 21,
  "nextPage": 23,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 120,
  "notes": "The slide uses a bar chart to show revenue per employee and a table to show geographic workforce composition to argue that Eurofins is an outlier.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bar_chart_grouped",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b97-9fb7a842e09f/22",
  "deckHref": "/decks/019dd923-622c-750b-8b97-9fb7a842e09f",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b97-9fb7a842e09f.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-9fb7a842e09f#slide-22",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "It strikes us that it would be easier to overstate revenue than to commensurately overstate the number of employees, given the payroll and other taxes, social benefits, and insurance that employers generally provide.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b334-a0c92e09d0b3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.27,
        "w": 0.54,
        "x": 0.23,
        "y": 0.22
      },
      "kind": "chart",
      "text": "Revenue per Employee chart",
      "attrs": null,
      "subkind": "bar-grouped",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fc314293-e2c8-4ea1-8599-4439bf6d0bb9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "revenue per employee",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b334-a71f5c2bf975",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.78,
        "x": 0.11,
        "y": 0.53
      },
      "kind": "paragraph",
      "text": "This remarkable discrepancy doesn't appear to be related to geographic distribution.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "30e00e06-2a53-4f22-8ac5-703f8eafe33b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.8
      },
      "kind": "paragraph",
      "text": "Moreover, Eurofins' geographic footprint and business line mix have morphed significantly over time, yet it has always been an outlier.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4e991418-6bb6-4c6a-9548-fc57b6256ce8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.13
      },
      "kind": "paragraph",
      "text": "As shown below, Eurofins' revenue per average employee has long been an outlier compared to its publicly traded global peers SGS, Intertek, and Bureau Veritas.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "e36b828b-8ae2-4a69-af27-50af5b603e70",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.74,
        "x": 0.13,
        "y": 0.75
      },
      "kind": "source-note",
      "text": "*Note: Due to different reporting methodologies by Eurofins across the period of interest, these figures are from FTE between 2015 and 2019 and from EOY employees between 2020 and 2023.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b16eab06-3503-4bbb-ae5d-fb7087dc8f4d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.74,
        "x": 0.13,
        "y": 0.64
      },
      "kind": "table",
      "text": "Geographic workforce composition table",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "39a49759-da8b-4467-b92f-65a972e3ba4a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.55,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "title",
      "text": "Eurofins' Possibly Too-Good-to-be-True Metrics",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c1893536-71b7-44ff-8407-e419394a3066",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.5,
        "x": 0.25,
        "y": 0.61
      },
      "kind": "title",
      "text": "Below: Changes in Geographical Composition of Workforce*",
      "attrs": null,
      "subkind": "subtitle",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "94afb03d-f641-4214-8c30-4e56f7b32dc8",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "b19f6c7e-fab8-49d9-9341-a9f1cad26350",
      "evidence": "The slide explicitly argues that revenue per employee is 'too-good-to-be-true' and suggests potential overstatement.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 30,
      "from": 3,
      "beatId": "3d510a0f-6fd9-45d2-879c-09a0eaf3d1a5",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The research note presents various contradictions in Eurofins Scientific's financial reporting and disclosures.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}