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  "docSlug": "cddb6c0b289f",
  "documentTitle": "Eurofins Scientific SE (ERF)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2024-06-24 00:00:00",
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  "notes": "Includes a screenshot of a Spanish financial statement table and explanatory text regarding Eurofins' cash pooling structure.",
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      "kind": "callout",
      "text": "What we see is that the cash equivalent in Megalab is not cash but, instead, a debt that the Spanish cash pooling entity owes to Megalab.",
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      "text": "Table showing 'Efectivo y otros activos liquidos equivalentes' for 2022 and 2021.",
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      "text": "Con fecha 10 de diciembre de 2019 la Sociedad constituyó un contrato de gestión de tesorería denominado 'cash pooling' con la sociedad del grupo Eurofins Finance Luxembourg, SARL utilizando como sociedad intermediaria la sociedad española Eurofins NSC Spain S.L.U. A cierre del ejercicio 2022 como en 2021 el saldo traspasado por este concepto es el que figura en el epígrafe del balance 'Otros activos liquidos equivalentes'.",
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      "text": "What we see is that the cash equivalent in Megalab is not cash but, instead, a debt that the Spanish cash pooling entity owes to Megalab. In total, there are ~€50 million of payables that the NSC Spain owes to Spanish BUs.",
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      "kind": "paragraph",
      "text": "We would expect, based on the public company's filings, that Eurofins' business units hold ~5% of its revenue in cash. Instead, in Spain, we estimate that Spain has significantly less than 5% of its revenue in cash and the rest are reclassified related party receivables recorded as cash equivalents (after reviewing 30 Spanish entities of the ~80 total entities in Spain, including real estate and holding companies). See below.",
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      "kind": "title",
      "text": "Appendix A: Spain Cash Accounting Provides a Unique Window Into Group Accounts",
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