Also, one of the most important indicators of expense management is the share of operating expenses in total revenue. A high value or instability of this indicator indicates ineffective distribution of expenses and the absence of strict control over them. Maryam Khabibullina Financial expert of Fintablo, financial director of the 4th category Key Points About Operating and Capital Expenditures Operating expenses (OPEX) are the funds that a company spends to support its core business.
x, logistics, and rent. Capital expenditures (CAPEX) are funds spent on purchasing fixed assets: real estate, vehicles, land or equipment. It is necessary to control and analyze OPEX and CAPEX so that the business does poland telegram mobile phone number list not waste money and increases the efficiency of its work, and therefore profit. If a company's OPEX is very high, it can be reduced and, consequently, profits can be increased by transferring some of the costs to CAPEX.
For example, if a company has a stable flow of customers and established production processes, it is more profitable to buy its own equipment rather than rent it. For new companies, on the contrary, it is much more profitable not to buy their own assets, but to borrow them, so as not to invest too much money at the start.