OPEX, or operational expenditure, refers to the ongoing costs for running a business's day-to-day operations. These expenses include items like salaries, rent, utilities, and maintenance. Unlike capital expenditures (CAPEX), which are investments in long-term assets, OPEX is typically more variable and can fluctuate based on the level of business activity. Managing OPEX effectively is crucial for maintaining profitability. Companies often analyze their operational expenditures to identify areas for cost reduction and efficiency improvements. By optimizing OPEX, businesses can enhance their financial performance and allocate resources more effectively to support growth and innovation.