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Capital Expenditures (CapEx)
Funds used by a company to acquire, upgrade, and maintain physical assets, critical in evaluating a target company�s financial health.
Implications
The funds used by a company to acquire, upgrade, or maintain physical assets such as property, buildings, or equipment, critical for long-term growth and operational capacity.
Example
Example: A manufacturing firm invests in new machinery as part of its capital expenditures to increase production capacity and improve efficiency.
Related Terms
Different from operating expenses (OpEx), which cover day-to-day operational costs, CapEx involves significant investments in long-term assets.
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