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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 yellow arrow graphic at the bottom to visually emphasize the trend of declining earnings quality.",
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      "text": "In the most recent Q4'2022 quarter, there was a substantial decline in the quality ratio.",
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      "text": "LTM Adj. OCF / LTM Net Income: 1.18x",
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      "text": "Spruce Point frequently evaluates the ratio of operating cash flow to net income in assessing the \"earnings quality\" of a company's financial reporting. In the case of WTRG, we see a clear trend that the ratio has been in decline post the closing of Peoples in Q1'2020. In the most recent Q4'2022 quarter, there was a substantial decline in the quality ratio.",
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      "text": "Source: WTRG SEC filings, Bloomberg, and Spruce Point analysis",
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      "text": "WTRG's Earnings Quality As Measured By Trailing Adjusted Cash Flow vs. Net Income",
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      "text": "Our Analysis Indicates That WTRG's \"Earnings Quality\" Is Deteriorating",
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