Operational Expenses (OpEx) Measure
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An Operational Expenses (OpEx) Measure is an organizational economic measure for operating expense items (for operating an organization).
- Context:
- It can range from being an Monthly OPEX, to being a Quaterly OPEX, to being an Annual OPEX.
- It can range from being an Fixed OPEX to being a Variable OPEX, depending on necessity to run the business as is.
- It can (typically) be an input to an Operating Expense Ratio.
- …
- Example(s):
- Amazon's Annual OPEX, such as: $265.981B in 2019 (a 20.64% increase from 2018).
- Cost of Goods Sold (COGS).
- Commercial Real-Estate Operating Expense.
- …
- Counter-Example(s):
- See: Facility Expenses.
References
2022
- https://www.investopedia.com/ask/answers/112814/whats-difference-between-capital-expenditures-capex-and-operational-expenditures-opex.asp
- QUOTE: Capital expenditures (CapEx) are major purchases a company makes that are designed to be used over the long term. Operating expenses (OpEx) are the day-to-day expenses a company incurs to keep its business operational.
- Capital expenditures (CapEx) are a company’s major, long-term expenses, while operating expenses (OpEx) are a company’s day-to-day expenses.
- Examples of CapEx include physical assets, such as buildings, equipment, machinery, and vehicles.
- Examples of OpEx include employee salaries, rent, utilities, property taxes, and cost of goods sold (COGS).
- Items covered by OpEx often have a useful life of one year or less, while CapEx tends to pay for a benefit to the company for longer than one year.
- Capital expenditures cannot be deducted from income for tax purposes, but operating expenses can be.1
- QUOTE: Capital expenditures (CapEx) are major purchases a company makes that are designed to be used over the long term. Operating expenses (OpEx) are the day-to-day expenses a company incurs to keep its business operational.
2020
- (Wikipedia, 2020) ⇒ https://en.wikipedia.org/wiki/operating_expense Retrieved:2020-6-23.
- An operating expense, operating expenditure, operational expense, operational expenditure or opex is an ongoing cost for running a product, business, or system. [1] Its counterpart, a capital expenditure (capex), is the cost of developing or providing non-consumable parts for the product or system. For example, the purchase of a photocopier involves capex, and the annual paper, toner, power and maintenance costs represents opex. [2] For larger systems like businesses, opex may also include the cost of workers and facility expenses such as rent and utilities.
- ↑ David Maguire, The business benefits of GIS : an ROI approach, 1st ed. (Redlands Calif.: ESRI Press, 2008), http://roi.esri.com/.
- ↑ Aswath Damodaran, Applied Corporate Finance: A User’s Manual (John Wiley and Sons, 1999), http://pages.stern.nyu.edu/~adamodar/New_Home_Page/AppldCF/derivn/ch5deriv.html.
2020
- https://www.macrotrends.net/stocks/charts/AMZN/amazon/operating-expenses
- QUOTE: ... Amazon annual quarterly operating expenses history and growth rate from 2006 to 2020. Operating expenses can be defined as the sum of all operating expenses for the given industry.
Amazon operating expenses for the quarter ending March 31, 2020 were $71.463B, a 29.27% increase year-over-year. Amazon operating expenses for the twelve months ending March 31, 2020 were $282.164B, a 24.5% increase year-over-year. Amazon annual operating expenses for 2019 were $265.981B, a 20.64% increase from 2018. Amazon annual operating expenses for 2018 were $220.466B, a 26.88% increase from 2017. Amazon annual operating expenses for 2017 were $173.76B, a 31.84% increase from 2016.