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  "documentTitle": "Essential Utilities, Inc. (WTRG)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-03-08 00:00:00",
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  "notes": "The slide uses a combination of a financial table and a bar chart to highlight the outlier status of WTRG's bad debt reserves.",
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      "kind": "callout",
      "text": "WTRG's Bad Debt Allowance Skyrocketed From 20.6% to 29.2%",
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      "text": "Peer Benchmarking: Allowance for Doubtful Accounts As a % of Gross Trade Receivables",
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      "text": "allowance for doubtful accounts: 29.2%",
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      "text": "An indicator of the quality of WTRG's customer base can be seen by analyzing its accounts receivable and allowance for doubtful accounts. Prior to the acquisition of Peoples in 2020, it averaged approximately 6.4% of gross receivables. We find that WTRG's allowance as a percentage of gross receivables spiked to 29.2% in 2021 and is still highly elevated at 23.7% through year end 2022. Based upon a benchmarking analysis of its peers, we find that WTRG has by far the highest bad debt reserve.",
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      "text": "Source: 2021 10-K; Spruce Point analysis and SEC filings",
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      "text": "WTRG's Accounts Receivables table showing Billed utility revenue, Other, Less allowance for doubtful accounts, and Net accounts receivable for 2021 and 2020.",
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      "text": "A Pointed Indicator of WTRG's Financially Stressed Customer Base",
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