Business, finance and operations

Capital expenditure (CAPEX)

  • Business, finance and operations

Definition

Money spent on acquiring or improving long-term assets, such as equipment, property, buildings, machinery or major software, rather than day-to-day running costs, typically used over several years.

Also called

CAPEX, Capital expenditure

For your role

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Why it matters

Large investments shape a business’s future capability and cash position.

Where it is used

Investment approvals, budgets and asset plans.