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  "documentTitle": "Stryker Corp. (SYK)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2022-04-06 00:00:00",
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  "notes": "The slide highlights that Stryker's reported SG&A is not directly comparable to peers because it excludes shipping and handling costs from SG&A (unlike some peers).",
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      "text": "Our pro forma analysis illustrates that Stryker has the second highest SG&A margin among peers at 36.1% - 37.1% of revenues.",
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      "text": "Adjusted SG&A to Revenues: 36.1% - 37.1%",
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      "text": "Spruce Point believes that Stryker's SG&A remains bloated, and that it has been passing through large adjustments in order to lower its Adjusted SG&A margin to 33.6%. However, we note that Stryker's SG&A margins are not directly comparable with peers because it includes Shipping and Handling costs through COGS. Unlike close peers which disclose this cost, Stryker does not. Transportation and logistics shipping costs have been rising and complications due to COVID-19. Our analysis suggests peers spend between 1% - 3.8% of revenues on these costs, with an average of 2.5%. Our pro forma analysis illustrates that Stryker has the second highest SG&A margin among peers at 36.1% - 37.1% of revenues. We note that Zimmer Biomet, which has the most bloated SG&A margin, is restructuring itself by spinning of its Spine and Dental business to \"optimize resource allocation\" and \"reduce complexity\".(1)",
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      "text": "\"optimize resource allocation\" and \"reduce complexity\" — Zimmer Biomet press release, Feb 5, 2021.",
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      "text": "1) \"Zimmer Biomet Announces Intent to Spin Off Spine and Dental Businesses\", press release, Feb 5, 2021",
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      "text": "Source: Company filings and Spruce Point Analysis. Note: Analysis includes peers that disclose where they classify Shipping and Handling Costs. Note: We assume a range of Stryker's shipping and handling costs with reference to peers",
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      "text": "Spruce Point Adjusted Selling, General And Administrative Benchmarking Analysis",
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      "text": "Stryker's Bloated SG&A Footprint Among The Highest In The Industry",
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