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  "documentTitle": "FTAI Aviation, Ltd. (FTAI)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Research",
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  "presentationDate": "2025-01-15 00:00:00",
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  "notes": "The slide uses a Muddy Waters Research template, focusing on accounting manipulation.",
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      "text": "This has the consequence of inflating FTAI’s EBITDA margins, which are ~ten percentage points higher than peers.",
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      "text": "MUDDY WATERS RESEARCH",
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      "text": "FTAI’s AP EBITDA margins (~30% - 40%) are not representative of economic reality because ~70% of AP’s COGS originated in the Leasing segment, and, we believe, benefit from depreciation while held in Leasing.\nAerospace Products incurs COGS from the engines it sells on the basis of Inventory carrying values. Because its Inventory has largely come from depreciated Leasing Equipment, FTAI incurs materially lower Aerospace COGS than do its MRO peers.\nFTAI also has considerable subjectivity to calculate engine residual values, which can cause material differences in the values of assets FTAI transfers from Leasing to Inventory.\nThis has the consequence of inflating FTAI’s EBITDA margins, which are ~ten percentage points higher than peers.\nFTAI has also moved Inventory back to Leasing, which could be an effort to again benefit from Leasing depreciation.",
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      "text": "EBITDA margin: 10%",
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      "kind": "paragraph",
      "text": "Note: See Appendix where FTAI notes ~80% of shop visit costs are materials, which suggests that there is opportunity for meaningful depreciation while held in Leasing Equipment.",
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      "text": "FTAI’s EBITDA Margins Are a Direct Result of Its Misleading Accounting",
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