Browse Definitions :
Definition

Opex (operational expenditure)

Contributor(s): Brita Van Fossen

An operational expenditure (Opex) is the money a company spends on an ongoing, day-to-day basis in order to run a business or system. Depending upon the industry, these expenses can range from the ink used to print documents to the wages paid to employees. The counterpart, Capex, is the money spent on the improvement or purchase of fixed assets.

There is a direct correlation between Opex and the value of the enterprise, in that when the Opex decreases, while maintaining the same level of production and quality, the overall value of the enterprise increases.

Opex and Capex are commonly used financial reporting terms. A similar but not closely related term, forex, stands for foreign exchange.

 

See also: operational costs, hoteling, cost center, IT chargeback system, IT MOOSE management, EBITDA

 

Continue reading about OPEX:

 > The difference between Opex and Capex

 > Opex vs. Capex: Maintaining the right balance

 > Capex to Opex: Conversion of IT investments

This was last updated in December 2011

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • GPS jamming

    GPS jamming is the process of using a frequency transmitting device to block or interfere with radio communications.

  • time-based one-time password (TOTP)

    A time-based one-time password (TOTP) is a temporary code, generated by an algorithm, for use in authenticating access to ...

  • Security Operations Center (SOC)

    A security operations center (SOC) is a command center facility for a team of IT professionals with expertise in information ...

SearchHealthIT

SearchDisasterRecovery

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

SearchStorage

  • SSD (solid-state drive)

    An SSD (solid-state drive) is a type of nonvolatile storage media that stores persistent data on solid-state flash memory.

  • NAND flash memory

    NAND flash memory is a type of nonvolatile storage technology that does not require power to retain data.

  • storage class memory (SCM)

    Storage class memory (SCM) is a type of NAND flash that includes a power source to ensure that data won't be lost due to a system...

Close