{
  "docId": "019dd923-622c-750b-8b98-ce8e8f2b4a97",
  "docSlug": "c5a10320e53e",
  "documentTitle": "Cintas Corp. (CTAS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-11-13 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 28,
  "pageCount": 73,
  "prevPage": 27,
  "nextPage": 29,
  "slideType": "preempt_rebuttal",
  "function": "expose_contradiction",
  "density": "balanced",
  "nDataPoints": 60,
  "notes": "The slide uses red boxes and red text to highlight deteriorating financial ratios.",
  "elementsJson": [
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    "callout_box"
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  "slideHref": "/slides/019dd923-622c-750b-8b98-ce8e8f2b4a97/28",
  "deckHref": "/decks/019dd923-622c-750b-8b98-ce8e8f2b4a97",
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  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-ce8e8f2b4a97#slide-28",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Working capital strain evident with highest working capital / sales",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
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      "componentId": "019dd953-2b65-734e-a979-b19ff79df26c",
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    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "working capital / sales: 20.0%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-2b65-734e-a979-b4220a74cbbe",
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    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
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        "y": 0.18
      },
      "kind": "paragraph",
      "text": "While analysts laud Cintas’s performance, and management talks up great execution and record results, there are clear signs of financial strains emerging in its business. We observe a spike in allowance for doubtful accounts, record working capital to sales, and expanded DSOs and DPOs.",
      "attrs": null,
      "subkind": "paragraph",
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    {
      "bbox": {
        "h": 0.03,
        "w": 0.3,
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        "y": 0.94
      },
      "kind": "source-note",
      "text": "Source: Cintas and G&K financials, Spruce Point analysis",
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      "confidence": null,
      "componentId": "6cc4f012-3b2f-443e-90c0-904d4d26fcad",
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      "bbox": {
        "h": 0.65,
        "w": 0.9,
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      },
      "kind": "table",
      "text": "Financial data table comparing G&K Services and Cintas historical periods against current Q3 19, FY 2019, and Q1 20 results.",
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      "subkind": "data",
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      "bbox": {
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        "w": 0.65,
        "x": 0.305,
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      },
      "kind": "title",
      "text": "Obvious Signs of Financial Strain At Cintas",
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      "confidence": null,
      "componentId": "84d391ad-03ee-4b5a-b864-1047887fbe08",
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  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
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      "name": "fraud-exposure",
      "slug": null,
      "matchId": "e28e313b-ba30-499d-a491-d5b61a3b4f46",
      "evidence": "The slide uses financial ratio analysis to argue that management's positive narrative contradicts underlying deteriorating working capital metrics.",
      "confidence": 0.9
    }
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      "beatId": "08a57d58-a3bb-413f-b60b-9f1e254d6671",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle",
      "beatSlug": "overcoming-monster-the-struggle",
      "evidence": "The deck presents a detailed analysis of Cintas' financial struggles.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Development",
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  ],
  "loops": [
    {
      "to": 30,
      "from": 25,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "d4fcd83e-0736-4644-956e-d1016032d478",
      "evidence": "The deck presents a detailed analysis of Cintas' financial strain.",
      "position": 1,
      "objective": "What is the cost of inaction for Cintas' investors?",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
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  "locked": true
}