Operating expenses
The cost of running the core business: production, selling and administration — everything except interest and tax.
How to read the number
Revenue less these expenses is operating profit. Their movement relative to revenue shows whether growth comes from scale or from rising costs.
When the metric lies
What the line contains differs between companies and standards: some include depreciation, others report it separately. Comparing two companies on the absolute figure without checking the composition is meaningless.
Where it is used
The metric is calculated across every security in the catalogue and appears on the instrument card, in the multiples table and in the screener.
Also known as: operating expenses, opex