CapEx

Capital Expenditures

CapEx is spending on long-term assets such as equipment, buildings, or technology. These costs are capitalized and depreciated over time.

CapEx appears on the cash flow statement under investing activities. It differs from OpEx, which covers day-to-day operating costs.

Related Terms

Operating Expenses

OpEx refers to the day-to-day expenses required to run a business, such as salaries, rent, and utili...

Depreciation is the accounting method of allocating the cost of a tangible asset over its useful lif...

A balance sheet is a financial statement that reports a company's assets, liabilities, and sharehold...

A cash flow statement reports cash inflows and outflows from operating, investing, and financing act...

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