OPEX (Operating Expenditure)

OPEX, or Operating Expenditure, refers to the expenses required for the day-to-day functioning of a business. These expenses include rent, utilities, salaries, and office supplies. Unlike capital expenditures, operating expenses are fully deducted in the accounting period they are incurred. They are essential for maintaining the company’s current operations and are typically shorter-term costs. OPEX is a key component in calculating a company’s operational cash flow.