What does Opex mean?

Definition

Opex (Operational Expenditure) refers to the daily operating expenses required to maintain a company’s regular activities and functions. These include costs like salaries, rent, utilities, maintenance, and supplies.

Focus

Unlike Capex, these expenses are not capitalized but recorded as costs in the income statement during the period they are incurred. Their goal is to ensure the business’s continuous operation without generating long-term assets.

Involvement

Primarily involves areas such as:

• Finance (cash flow management).
• Operations (daily cost optimization).
• Human Resources (payroll and benefits expenses).

Regular Practice

Opex is essential for operational efficiency and short-term profitability. Sectors like services, retail, or technology often prioritize its control to maintain competitive margins and financial flexibility.

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