What is Opex?

Category: Finance

1Definition

Operating Expenditure—the ongoing costs of running a business day-to-day.

2Context

Includes rent, utilities, salaries, and supplies. Expensed immediately on income statement.

3Example

A company's opex includes office rent, internet bills, and employee salaries.

Common Trap

Low opex isn't always good—underinvestment in operations can hurt long-term.

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