COGS: How I bankrupted MoviePass

The TL;DR

• This piece is part of our deep dive into financial metrics and their application. Previous pieces covered Revenue and Cash Conversion Cycle.
• Today we are moving one line down in the income statement to Cost Of Goods Sold. COGS is far trickier than it appears and can act as an indicator of market power. In isolation, it is kinda useless but within the right context can be incredibly powerful.
• Also, in case you missed the announcement, Adam Keesling has moved on from Napkin Math and Evan Armstrong has taken over as Lead Writer. (You can follow updates from Adam on Twitter or on his email list.)