Profitability
Operating expenses
Operating exp.
What it is
All running costs outside the direct cost of production: R&D, sales, marketing, administration.
How to read it
Their trend versus revenue measures management discipline. Ideally they grow more slowly than sales.
What it does not tell you
An aggregate: an increase can reflect growth investment or cost drift. You need the breakdown to tell which.
Other measures — Profitability
Educational content. Polaris is not a registered investment adviser and makes no recommendation.