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  "documentTitle": "Carvana Co. (CVNA)",
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  "authorName": "Kerrisdale Capital",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-06-15 00:00:00",
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  "notes": "The slide uses a table to highlight the discrepancy between reported liquidity and actual usable cash, followed by a narrative analysis of inventory age constraints.",
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      "kind": "callout",
      "text": "The majority of the committed liquidity Carvana represents as \"available\" is not available for its most pressing concern: servicing its debt.",
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      "text": "Committed liquidity resources: $3,527",
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      "text": "Carvana has also drastically reduced the size of its inventory to reduce sales cycles and avoid the risk of declining car prices.",
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      "text": "The floor plan facility can only be used for the (very) short-term financing of used vehicle inventory. Amounts borrowed bear an effective interest expense of 7.55% and must be repaid 10 days after the vehicle is sold.",
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      "kind": "paragraph",
      "text": "The facility also includes certain criteria for what vehicles are eligible to be borrowed against which may complicate Carvana's stated inventory management strategy.",
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      "kind": "quote",
      "text": "“purchasing fewer retail vehicles means fewer low age units are added to the website which other things being equal, increases the average age of our inventory.” — Carvana 4Q shareholder letter",
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      "text": "Source: Carvana 1Q23 SEC form 10-Q.",
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      "text": "Table showing cash, revolving facilities, and total liquidity for March 31, 2023 and December 31, 2022.",
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      "text": "(Over)stated Committed Liquidity Resources",
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