CAPEX (Capital Expenditure)

CAPEX (Capital Expenditure) refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. This type of spending is often used by the company to undertake new projects or investments. Capital expenditures are typically used for long-term investments aimed at improving a company’s efficiency or capacity. These expenses are capitalized, meaning they are amortized or depreciated over the asset’s life rather than being expensed in the year they were incurred.