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  "documentTitle": "Super Micro Computer, Inc. (SMCI)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-01-10 00:00:00",
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  "notes": "The slide uses a table to contrast management's stated 85-90 day target with actual performance calculated via Bloomberg methodology.",
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      "text": "Based on an industry accepted measure, we find SMCI's cash conversion has been worsening in the past few years and is well above management's \"target\" range of 85-90 days.",
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      "text": "Quotes from SMCI conference calls regarding cash conversion targets",
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      "text": "cash conversion cycle: 85-90",
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      "kind": "paragraph",
      "text": "SMCI provides metrics on its conference call such as its cash conversion cycle, days inventory, sales and payables. However, it does not provide these metrics in SEC filings or give a definition to check its calculation. Based on an industry accepted measure, we find SMCI's cash conversion has been worsening in the past few years and is well above management's \"target\" range of 85-90 days.",
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      "kind": "quote",
      "text": "This quarter, our cash conversion cycle increased seasonally to 92 days from 82 days in the prior quarter. Both day sales outstanding due to collections and inventory days increased to position stock for the second quarter offset-- was offset by increasing days payable. Our near-term target is to stay in the range of 85 to 90 days for the cash conversion cycle. — SMCI Conference Call (Q1 2019)",
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      "text": "(1) Inventory Days + Days sales outstanding - Days Payable as per Bloomberg methodology. Source: SMCI Conference Calls",
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      "kind": "title",
      "text": "Yet, Other Non-Revenue Long-Term Targets Have Been Wildly Missed",
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