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  "docSlug": "207d3ac66ddd",
  "documentTitle": "Canadian Tire Corporation (CTC.A)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-05 00:00:00",
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  "notes": "Uses red boxes to visually highlight the divergence between revenue growth and receivables growth.",
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      "kind": "callout",
      "text": "A classic sign of potential accounting shenanigans is when accounts receivable are growing faster than reported sales.",
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      "text": "Y-o-Y Growth: 37.0%",
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      "text": "A classic sign of potential accounting shenanigans is when accounts receivable are growing faster than reported sales. It is often cited as a top red flag to predict a fraud or accounting scandals.(1,2) This phenomenon may suggest aggressive revenue recognition practices at best, a change in credit terms to customers, or at worst foul play such as channel stuffing. Over the past 18 months, we observe CTC's Y-o-Y receivables growth significantly outpaced its retail revenue growth.",
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      "text": "\"How to Predict the Next Fiasco In Accounting and Bail Early\" — Wall St Journal, Jan 2002",
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      "kind": "source-note",
      "text": "Source: Company financials, Spruce Point analysis. 1) How to Predict the Next Fiasco In Accounting and Bail Early, Wall St Journal, Jan 2002. 2) How To Detect And Prevent Financial Statement Fraud, ACFE - Association of Certified Fraud Examiners",
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      "text": "Financial table comparing Total Retail Revenue and Trade and Other Receivables growth over annual and quarterly periods.",
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      "text": "Obvious Signs of Financial Strain",
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