Capex: What is Capital Expenditure

What is Capital Expenditure Capital expenditure, often abbreviated as CapEx , refers to the funds a company uses to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. This kind of expenditure is considered an investment in the business with the expectation of benefiting the company over the long term beyond the current fiscal year. Difference between Capex and Opex. An Example: The company purchased new machinery and continued to invest until ... Learn what capital expenditure ( CapEx ) is, how it affects cash flow, balance sheet, and valuation, and how to calculate it. Find out the difference between maintenance and growth capex , and the types and importance of capital expenditures. Capital Expenditure ( CAPEX full form) is the expenditure made by a firm to improve its long-term assets or to purchase new equipment. It serves as a potent financial metric and helps financial analysts understand a company’s investment patterns. Capex refers to the money a business spends on acquiring, upgrading, or maintaining long-term assets —things like buildings, machinery, vehicles, or even software that stick around for years.