Re:CoreWeave bond yield tops 16% as AI credit stress rises
by ElProlactin on Tuesday November 10, 2026 @07:22AM
(#50439313)
There's one problem with your comment: "cost of goods sold" is a basic accounting metric for which there is a definition. It's not arbitrary at all.
A company selling potatoes would not include land in COGS. Land is a a fixed asset. Even if a farm rented/leased the land, the payments would fall under OpEx, not COGS.
Seeds, pesticide/fungicide/herbicide, direct labor, water and electricity for irrigation, etc. would all be COGS.
Would it make sense to spend $1 billion on land to grow $1 million worth of potatoes every year? Probably not. But that doesn't mean you couldn't sell potatoes on your $1 billion land at a positive gross margin if revenue exceeded COGS.
This is the AI debate that is impossible to have when people refuse to educate themselves about basic financial accounting concepts.
A company selling potatoes would not include land in COGS. Land is a a fixed asset. Even if a farm rented/leased the land, the payments would fall under OpEx, not COGS.
Seeds, pesticide/fungicide/herbicide, direct labor, water and electricity for irrigation, etc. would all be COGS.
Would it make sense to spend $1 billion on land to grow $1 million worth of potatoes every year? Probably not. But that doesn't mean you couldn't sell potatoes on your $1 billion land at a positive gross margin if revenue exceeded COGS.
This is the AI debate that is impossible to have when people refuse to educate themselves about basic financial accounting concepts.