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As a result, pre-tax profit and the

Posted: Wed Jan 22, 2025 9:31 am
by Nahid620#
This happens because equipment wears out or becomes obsolete over time and needs to be replaced. Depending on the priorities and life cycle of the company, either a reduction or increase in operating or capital expenses may be beneficial. If the business owner expects dividends that are calculated from net profit, i.e. after taxes, it is preferable to reduce OPEX.


income tax itself will decrease, and the amount of dividends will be usa telegram mobile phone number list higher. Companies that rely on business growth and development, rather than dividends, are advised to reduce monthly expenses and acquire assets, i.e. increase CAPEX. They will become an investment in the future and increase the value of the company's assets.


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.