DigitalOcean raises $100M in debt as it scales toward revenue of $300M

Re:DigitalOcean raises $100M in debt as it scales toward rev... by scarface74 on Thursday February 20, 2020 @08:30PM (#22380256)

The asset will eventually have to be replaced. In the long term, it doesn’t make a difference - ignoring the time value of money.

Theoretically, the only reason we have depreciation expenses at all instead of just expensing the entire cost at once (cash accounting) is that we decided that accrual accounting was more representative than cash based accounting.

I am not an accountant. I’m an MBA dropout after almost finishing.

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Re:DigitalOcean raises $100M in debt as it scales toward rev... by ToFundorNot on Friday February 21, 2020 @09:22PM (#22388961)

Also, taxes. If we were able to fully expense capital plants and equipment, there wouldn't a single company paying taxes, they would continually purchase more to offset profit, eliminate taxation, and accelerate growth.

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Re:DigitalOcean raises $100M in debt as it scales toward rev... by scarface74 on Friday February 21, 2020 @10:54PM (#22389320)

Is that a bad thing?

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Re:DigitalOcean raises $100M in debt as it scales toward rev... by ToFundorNot on Saturday February 22, 2020 @04:37PM (#22393505)

As far as governments are concerned, yes, as they will never get tax revenues from companies if they are allowed to fully expense large purchases.

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