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  "documentTitle": "Floor & Decor Holdings, Inc. (FND)",
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      "text": "By under-reserving for bad debts, FND may be overstating revenues and margins.",
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      "text": "Allowance % of Gross Receivables: 0.2%",
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      "text": "Spruce Point believes that FND is taking more exposure to weaker commercial credit clients to bolster revenues. The 10-K says, “The Company reserves for estimated uncollected receivables based on historical trends, which historically have been immaterial.” In fact, we observe that it has reserved progressively less for bad debts as a percentage of gross receivables since 2020 but is recently pursuing litigation to recover uncollected payments from a small business owing it almost $80,000. By under-reserving for bad debts, FND may be overstating revenues and margins.",
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      "text": "The Company reserves for estimated uncollected receivables based on historical trends, which historically have been immaterial. — Floor & Decor 10-K",
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      "text": "Source: FND 10-Ks and Floor and Décor vs. Oliver Capital Group LLC, Cobb county case 23107140",
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      "kind": "title",
      "text": "#9: Shrinking Allowance For Bad Debts, But Now Filing Lawsuits Against Delinquent Accounts?",
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