Frequently Asked Questions

Financial Metrics

What is the difference between a structural and a transitory cost?

A structural cost repeats every month: rent, payroll, security, utilities. A transitory or non-recurring cost happens once and does not return.

Telling them apart is key to reading a report correctly. If they are not separated, a month with a large extraordinary payment looks like the start of a bad trend when it was actually an isolated event.

Example: July 2026's result includes –$7,619,808 COP for the final CAPEX payment. It is a one-time, definitive payment: it disappears from August onward. The report also flags March with an asterisk because it included $3.19 million in non-recurring extraordinary expenses.

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What is the difference between a structural and a transitory cost? | FAQ | Circular Urban