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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": "Uses a 'Quote on Operating Leverage' section to set up the contradiction, followed by a data table to prove the point.",
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      "text": "Spruce Point believes that Xylem’s talk of margin expansion and operating leverage is a mirage that has not succeeded.",
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      "text": "Adj. EBITDA / Employee: $52,809",
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      "text": "Spruce Point believes that Xylem’s talk of margin expansion and operating leverage is a mirage that has not succeeded. When we asked a former senior level executive why Xylem was challenged, we learned that its digital business was human capital intensive and was not accretive. These challenges can be further illuminated by analyzing Xylem’s revenue and Adjusted EBITDA per employee. Both metrics have declined post-COVID-19 in the same period it has recorded $475m of restructuring and special charges.",
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      "text": "We have true opportunity for margin expansion through operating leverage, driving commercial and operational excellence and continuing to shift our portfolio towards digital solutions. — CFO Roland, Investor/Analyst Day Sept 30, 2021; The reality is Xylem’s digital sales are actually dilutive, not accretive. — Former Xylem Executive Response",
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      "text": "Scaling Is Failing In Digital",
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