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  "documentTitle": "Stryker Corp. (SYK)",
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  "authorName": "Ben Axler",
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  "notes": "The slide uses a table to demonstrate that after adjusting for the reclassification of loaner instruments, the 'Days Inventory' metric remains largely flat, contradicting the CEO's statement.",
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      "kind": "callout",
      "text": "No Real Inventory Turnover Improvement",
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      "text": "Stryker recently disclosed a 2019 reclassification of loaner instruments from inventory to other long-term assets. By pro forma adjusting historical inventory, we find days inventory is largely unchanged pre vs. post COVID-19 while the CEO claims improvements.",
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      "text": "So we're really getting much more effective in our utilization of our manufacturing facilities... our days of inventory have actually not just flattened, but its come down nicely...",
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      "text": "So we're really getting much more effective in our utilization of our manufacturing facilities. The other aspect is inventory management. And again, Glenn touched upon it, If you look at the several years up to maybe 2018, 2019, you can see that our inventory was on the upswing in terms of the -- not just the value, but also days of inventory. Over the last 3 years or so, we have really looked at each of our product lines end to end and really put in place a variety of inventory optimization plans and strategies. And you'll see that our days of inventory have actually not just flattened, but its come down nicely, and we see further progress in the horizon as we continue to proliferate these methods. — CEO Kevin Lobo, 2021 Analyst Call, Nov 18 2021",
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      "text": "Source: Stryker Filings, Spruce Point Analysis. 1) See Note 1 under 'Basis of Presentation and Consolidation', 2020 10-K page 25. Note: We assume a stable $302m of loaner instruments throughout 2019",
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