capex

Definition

Capex
Capital Expenditures refer to the funds that a company uses to acquire, upgrade, or maintain physical assets such as property, buildings, technology, or equipment. These long-term investments are essential for sustaining and growing a company’s operational capabilities and competitive edge. CapEx is recorded on the balance sheet as an asset and typically depreciated over time, reflecting the gradual use and wear of the asset. Monitoring a company’s CapEx is vital, as it provides insights into its future growth, infrastructure investment, and overall strategic priorities. For investors, understanding CapEx trends is crucial when evaluating financial health and planning long-term investment strategies in capital-intensive industries.

See also