Join Rudolph Rosenberg for an in-depth discussion in this video The basics of operating expenses analysis, part of Financial Analysis: Analyzing the Bottom Line with Excel.
…In this chapter, we will be discussing the last big section of the P and…L, which covers all of the operating expenses.…This section is commonly called Opex, as a short name for Operating Expenses.…To summarize the concept briefly, Opex are another category of costs, but…this time, used to run the day-to-day operations of the company, and…not related to the production of goods.…For example, you can find in Opex, the rent of office space,…the salaries of sales representatives, the marketing program costs, and actually,…any other cost, as long as it does not relate to the production of goods.…
The basic principle is that the less you have of it, the better for your business.…Of course, most of the time, cutting back on costs is great for…your company as long as you make sure you don't cut back on those costs that…are directly linked with your business generation efforts.…For example, if you decide to stop flying in business class and take economy tickets…to cut back on costs, that's not going to impact your business, just your comfort.…
Also check out the companion course, Financial Analysis: Analyzing the Top Line with Excel.
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- Finding data points
- Prepping data
- Calculating standard cost and gross margins
- Analyzing overall gross margin performance
- Analyzing individual and overall expenses