Capital Expenditure (CapEx)

Capital expenditure (CapEx) refers to the funds a company uses to acquire, upgrade, or maintain physical assets such as property, buildings, machinery, and equipment. These expenditures are essential for expanding a business’s operational capacity and enhancing its long-term efficiency. Unlike operational expenses, which cover day-to-day operational costs, CapEx is typically a significant investment that impacts a company’s balance sheet and financial strategy over several years.