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  "documentTitle": "Xylem Inc. (XYL)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-08-09 00:00:00",
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  "notes": "The slide uses a direct quote from Xylem's 2022 Annual Report to frame the cash flow quality as suspicious.",
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      "kind": "callout",
      "text": "Spruce Point's warns that for the first time ever before announcing the acquisition of Evoqua, Xylem citied as its first factor for increased cash flow \"higher customer prepayments.\" This raises the possibility that Xylem offered customers incentives to make prepayments, which could entail lower future margins, or is entering into long-term capital projects of greater risk.",
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      "kind": "callout",
      "text": "Spruce Point's warns that for the first time ever before announcing the acquisition of Evoqua, Xylem citied as its first factor for increased cash flow \"higher customer prepayments.\"",
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      "text": "operating cash flow: $58 million",
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      "text": "During 2022, net cash provided by operating activities was $596 million, compared to $538 million in 2021. The $58 million year-over-year increase was primarily driven by higher customer prepayments, timing of employee benefit payments and lower interest payments. Higher working capital levels, reflecting increased sales, partially offset these items. — Xylem 2022 Annual Report",
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      "text": "Source: Xylem 10-K",
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      "text": "Xylem's MD&A Discussion of Operating Cash Flow. 2022 Annual Report. Operating Activities: \"During 2022, net cash provided by operating activities was $596 million, compared to $538 million in 2021. The $58 million year-over-year increase was primarily driven by higher customer prepayments...\"",
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