What is the difference between OpEx and CapEx?

ComparloCategory: BusinessWhat is the difference between OpEx and CapEx?
Ahmed Ibrahim asked 4 years ago

{“lhsI”:”OpEx”,”rhsI”:”CapEx”}

1 Answers
Samer Salah answered 4 years ago
[{“cellsNumber”:2,”row”:”Definition”,”lhsI”:”Stands%20for%20%22Operational%20Expenditure%22%20and%20can%20be%20considered%20as%20any%20ongoing%20cost%20%28either%20fixed%20or%20variable%29%20to%26nbsp%3Brun%20a%20business%20%2Csystem%20or%20even%20a%20product.”,”rhsI”:”Stands%20for%20%22Capital%20Expenditure%22%20and%20can%20be%20considered%20as%20the%20cost%20of%20Building%20%2C%20Expanding%20or%20developing%20%26nbsp%3Bassets%20for%20a%20business%20%2Csystem%20or%20a%20product.”},{“cellsNumber”:2,”row”:”Examples”,”lhsI”:”Mobile%20Operator%20%26nbsp%3BOpEx%20%28Samples%29%3A%3Cbr%20\/%3E%0A%3Cul%3E%0A%3Cli%3EEngineers%20salaries%3C\/li%3E%0A%3Cli%3ETrainings%3C\/li%3E%0A%3Cli%3EO%26amp%3BM%20professional%20services%26nbsp%3B%3C\/li%3E%0A%3Cli%3EO%26amp%3BM%26nbsp%3Btools%26nbsp%3B%3C\/li%3E%0A%3Cli%3EFleet%20gas%20daily%20refill%26nbsp%3B%3C\/li%3E%0A%3Cli%3EData%20Center%20Electricity%20bills%26nbsp%3B%3C\/li%3E%0A%3C\/ul%3E”,”rhsI”:”Mobile%20Operator%20CapEx%20%28Samples%29%3A%3Cbr%20\/%3E%0A%3Cul%3E%0A%3Cli%3ENew%20Network%20Elements%20%28eNodeB\/MSC\/HLR\/EPC\/Routers..%29%3C\/li%3E%0A%3Cli%3EExpansions%20in%20existing%20nodes%20%28boards%20%2C%20ports%20%2Clicense..%29%3C\/li%3E%0A%3Cli%3ENew%20systems%20%28billing%20%2C%20portals%20%2C%20charging%2Cinventory%20..%29%3C\/li%3E%0A%3Cli%3ENew%20SW%20Customizations%3C\/li%3E%0A%3C\/ul%3E”},{“cellsNumber”:2,”row”:”Triggers “,”lhsI”:”OpEx%20is%20triggered%20once%20the%20asset%20purchased%20in%20order%20to%20%22operate%22%20.%20Example%20%3A%20Once%20Mobile%20operator%20did%20the%20functional%20acceptance%20of%20network%20element%20%2Cthe%20node%20will%20get%20into%20operation%20and%20accordingly%20the%20%26nbsp%3Bassociated%20increase%20in%20electricity%20bill%20will%20appear%20in%20the%20financial%20statement%20of%20the%20company%20as%20part%20of%20operational%20costs%20.”,”rhsI”:”CapEx%20is%20triggered%20when%20the%20company%20decides%20to%20%22Purchase%22%20a%20new%20asset%20or%20expansion%20.Example%20%3A%20Once%20the%20management%20in%20Mobile%20operator%20decided%20to%20purchase%20an%20EPC%20to%20launch%204G%20service%20%2C%20budget%20should%20be%20allocated%20to%20buy%20this%20node%20.”},{“cellsNumber”:1,”row”:”General Notes”,”lhsI”:”CapEx%26nbsp%3Bitem%20is%20subject%20to%20depreciation%20on%20yearly%20basis%20%28unlike%20OpEx%29%2Cwhich%20is%20important%20for%20the%20Tax%20calculations%20%2C%20example%20%3A%20Network%20Element%20purchase%20price%20is%20depreciated%20%26nbsp%3Bover%207-10%20years%20according%20to%20its%20life%20cycle%20.%3Cbr%20\/%3EUsually%20OpEx%20is%20higher%20than%20CapEx%20and%20companies%20look%20for%20alternatives%20%2C%20such%20as%20%3A%20instead%20of%20purchasing%20a%20product%20with%20associated%20high%20operation%20costs%20%2C%20lease%20it%20%28rent%20a%20shuttle%20bus%26nbsp%3Binstead%20of%20buying%20it%29″,”rhsI”:””}]

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