CapEx

Capital Expenditure

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. This type of expenditure is considered an investment in the business and is capitalized, meaning the cost is spread over the useful life of the asset rather than being fully deducted in the year they are incurred. Capex typically involves larger amounts of money and is undertaken to improve long-term performance, in contrast to OpEx which is more about the costs of maintaining current operational scope.

• Abbreviation: CapEx