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Glossary

Capital expenditure (Capex)

What is capital expenditure?

Capital expenditure refers to money spent on acquiring or improving long term assets such as equipment or property.

 

Why is capex important?

It supports growth and long term productivity. Investments in assets improve efficiency and capacity.

 

What is the difference between capex and operating expenses?

Capex relates to long term assets. Operating expenses relate to day to day business costs.

 

What are examples of capex?

Examples include purchasing machinery, upgrading buildings, or investing in infrastructure.

 

How is capex recorded?

Capex is recorded as an asset and depreciated over time.