Operating expenses

Operating Expenses
An operating expense, operating expenditure, operational expense, operational expenditure or OPEX is is a day-to-day expense that is incurred while running a business.

Definition
Operating expenses
1. Expenses incurred in conducting normal business operations. Operating expenses may include wages, salaries, administrative and research and development costs, but excludes interest, depreciation, and taxes.

Operating Expenses
Quick Definition
A summation of various expenses incurred during company operations.

Operating Expenses
Operating expenses are all of the costs associated with operating the company.

Operating expenses
The cost of doing business. Operating expenses are deducted from revenues, and the result is, hopefully, profits.

Operating Expenses " the costs a fund incurs in connection with running the fund, including management fees, distribution (12b-1) fees, and other expenses.

Non-Operating Expenses
Expenses that occur outside of a company's basic operations.
Non-Operating Income ...

Operating expenses
The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted.

The operating expenses incurred by a mutual fund are a combination of fixed and variable costs. As the asset of a mutual fund increases, the fixed cost gets spread over a larger asset base.

That makes operating expenses / revenue = 39,168/77,442 = 0.51 or 51%. The efficiency ratio is 0.51 or 51%.
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If "benefits, claims, and credit losses" are added to operating expenses the ratio gets worse.

Annual fund operating expenses
For investment companies, the management fee and "other expenses," including the expenses for maintaining shareholder records, providing shareholders with financial statements, ...

A measure of the operating expenses of a mutual fund as a percentage of the average net assets. These expenses cover the costs of providing services to shareholders, professional money managers, and administrative staff.

EBIT = Revenue - Operating Expenses
Also known as Profit Before Interest&Taxes (PBIT), and equals Net Income with interest and taxes added back to it.
Earnings Before Interest After Taxes - EBIAT ...

earnings Calculated by the following: Total Revenues minus cost of sales, operating expenses,... Earnings Before Interest and Taxes Abbreviated as EBIT. A measure of a firm's earning power from ongoing operations,...

Payments to mutual fund shareholders of dividends, interest and short-term capital gains earned on the fund's portfolio securities after deduction of operating expenses.
Income Fund ...

So then you have to deduct the company operating expenses? So how many millions of dollars do you think the company spent on operating expenses?

Related: European option Annual fund operating expensesFor investment companies, the management fee and "other expenses," including the expenses for maintaining shareholder records, providing shareholders with financial statements, ...

Some of that return pays operating expenses, some get re-invested in the business, and the rest is free cash flow.

An operating ratio is equal to the operating expenses divided by the operating revenue. The operating ratio is intended to measure operating efficiency.

Berry ratio = gross profit / operating expenses
Companies must achieve a result of one in order to demonstrate a profit; scores under one indicate that the company is operating at a loss.

Example #1: incurred losses- $800; operating expenses- $200; earned premium- $1,000. The combined ratio is 100%, the insurer broke even. Example #2: incurred losses- $800; operating expenses- $200; earned premium- $950 ($50 less in earned premium).

Expense Ratio A ratio used to analyze the amount paid for operating expenses and management fees by a company. In the insurance industry, the percentage is obtained by dividing the underwriting expenses by net premiums written.

The percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund's NAV.

Operating Profit is Sales Turnover minus all operating expenses. It represents the profit the company made from its actual operations as opposed to interest income, one-time gains and so forth.

Funds typically pay their regular and recurring, fund-wide operating expenses out of fund assets, rather than by imposing separate fees and charges on investors.

REITS also known as Real Estate Investment Trusts are basically instruments which allow individuals to get a stream of income from the rental income of the properties after the management companies deduct their operating expenses to manage the ...

12b-1 fees, also known as distribution fees, are one component of a mutual fund's annual fund operating expenses and can be thought of as an alternate way of paying sales-related expenses, such as compensating investment professionals.

subtracting operating costs and expenses from net sales operating margin: A measure of a company's profitability and efficiency, calculated by dividing a measure of operating profit (sales minus cost of producing goods and operating expenses) by ...

Also known as operating cash flow, Ebitda is calculated by subtracting costs of sales and operating expenses from revenues. Depreciation and amortization expenses aren't included in the costs.

It is calculated as follows: Net Sales + Depreciation + Amortization - Operating Expenses
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Accordingly, filing a rate case is sometimes necessary to recover the cost of a utility's capital investments, earn a fair rate of return on them, and recover higher operating expenses.

Gross profit margins are based on gross profits-sales minus the cost of producing the goods sold. Pretax profit margins are based on pretax profits-sales minus all operating expenses.

Sales revenues less cost of sales, operating expenses, and interest, before taxes have been paid.
Related topics:
Net profit ...

- Management expense ratio (including advisory fees, distribution charges and operating expenses)
- Transaction costs (brokerage and other trading costs) ...

EBITDA is calculated by subtracting cost of sales and operating expenses from revenues. Like the name implies, EBITDA does not take into consideration the interests, taxes, depreciation and amortization costs.

Expense ratio The proportion of assets required to pay annual operating expenses and management fees of a mutual fund.

Also known as operating profit before depreciation, EBITDA is the operating revenue less cost of sales, operating expenses, and SG&A expenses.

Expense ratio: In a mutual fund, the ratio between the operating expenses for the year and the total average net asset value. It usually amounts to less than 1%.

The Risk that the Cash flow of an Issuer will be impaired because of adverse economic conditions, making it difficult for the issuer to meet its operating expenses.

Related Links: ...

You can also find detailed information about ETFs on the website of The Nasdaq Stock Market. An ETF will have annual operating expenses and may also impose certain shareholders fees that are disclosed in the prospectus.

It is spelled out in the expense table of the prospectus (the topic of my column next week), where you'll find what the fund charges its shareholders to run a fund (the percentage of a fund's assets deducted every fiscal year for operating expenses).

Income Dividends Payments to mutual fund shareholders consisting of dividends, interest and short-term capital gains earned on the fund's portfolio securities after deduction of operating expenses.

The operating expenses of the company should cover them; otherwise, they are listed under fixed expenses. These charges may also include expenses fixed by agreements, such as pension fund contributions.

Business risk
The risk that the cash flow of an issuer will be impaired because of adverse economic conditions, making it difficult for the issuer to meet its operating expenses.

Operating margin - A measure of a company"s profitability and efficiency, calculated by dividing a measure of operating profit (sales minus cost of producing goods and operating expenses) by sales.

Even financially sound school districts may experience periods during a normal year when there is not enough cash to cover their operating expenses. Cash flow analysis will help school districts to better understand their revenues and expenditures.

Class A shares have front-end loads and Class C shares are said to be level loads neither carrying a front-end load or a back-end load but will have high operating expenses.

Other than the obvious fact that your money is being spread too thin, any dividends from the companies in the Index Fund could possibly be eaten up by management's operating expenses, ...

See also: Rating, Expenses, Market, Share, Stock