{
  "docId": "019dd923-622c-750b-8b98-98685acdea95",
  "docSlug": "11e962264b36",
  "documentTitle": "Carvana Co. (CVNA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": null,
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 38,
  "pageCount": 98,
  "prevPage": 37,
  "nextPage": 39,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "overcrowded",
  "nDataPoints": 6,
  "notes": "Uses a bar chart to highlight Carvana's outlier status in overhead costs.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bar_chart_vertical",
    "callout_box",
    "quote_block"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-98685acdea95/38",
  "deckHref": "/decks/019dd923-622c-750b-8b98-98685acdea95",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-98685acdea95.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-98685acdea95#slide-38",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.49,
        "x": 0.47,
        "y": 0.45
      },
      "kind": "callout",
      "text": "Material IT-related costs which may not scale well with the business are hidden in \"Other\" SG&A",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5957a9ff-5c87-4e7a-bf0c-2efa8ed7fb51",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.37,
        "x": 0.59,
        "y": 0.86
      },
      "kind": "callout",
      "text": "Sounds similar to CarMax, but with a \"last mile\" component. Why should we expect logistics costs to scale any better for Carvana than they have for CarMax? How could this possibly be a source of cost advantage for Carvana?",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a65cd020-38bc-4226-9349-47cecc2949a7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "Material IT-related costs which may not scale well with the business are hidden in “Other” SG&A",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee35-7258-b4d3-0bc00bf05969",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.28,
        "w": 0.38,
        "x": 0.04,
        "y": 0.45
      },
      "kind": "chart",
      "text": "Other SG&A as a % of Sales",
      "attrs": null,
      "subkind": "bar-vertical",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "26ff7e66-6599-48f8-8421-c7ce4ba9e441",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Other SG&A as a % of Sales: 8%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee35-7258-b4d3-12ad8986d81a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.92,
        "x": 0.04,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "We observe that \"Other Overhead Costs\" within Carvana's SG&A expenses represent over 8% of sales for the Company – more than double the corresponding figure of any major auto dealer.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2950540b-e7cc-46e0-b52c-f1fada9f2b66",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.49,
        "x": 0.47,
        "y": 0.61
      },
      "kind": "paragraph",
      "text": "\"Other overhead costs include all other overhead and depreciation expenses such as IT expenses, limited warranty, travel, insurance, bad debt, title and registration and other administrative expenses.\" - CVNA FY 2017 10-K",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6d0a2fb1-a19d-4b2a-9304-ae8e00a5a011",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.09,
        "w": 0.38,
        "x": 0.04,
        "y": 0.87
      },
      "kind": "paragraph",
      "text": "Transportation and Fulfillment. Third-party vehicle transportation is often slow, expensive and unreliable...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "85b41727-862e-4cac-ae84-5f54983b09b4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "“Other overhead costs include all other overhead and depreciation expenses such as IT expenses, limited warranty, travel, insurance, bad debt, title and registration and other administrative expenses.” — CVNA FY 2017 10-K",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-ee35-7258-b4d3-0c4a9704a7cc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.65,
        "x": 0.31,
        "y": 0.03
      },
      "kind": "title",
      "text": "Carvana Faces Major Expenses Which Are Unique To Its \"Employee-Light\" Business Model",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "25c216b6-53fe-4f68-93af-10382b2ea01f",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison_frame",
      "slug": null,
      "matchId": "85b25fbc-b86b-4f65-89af-eb7073cd972e",
      "evidence": "Comparing Carvana's SG&A metrics against industry peers to highlight an outlier.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 50,
      "from": 21,
      "beatId": "3c607426-ff1e-4a70-b914-fe17d1c9fc3d",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "The deck presents various challenges and obstacles faced by Carvana, including regulatory concerns and governance issues.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}