CapEx — Capital Expenditure
Definition: Money spent acquiring or upgrading long-lived assets — buildings, equipment, software platforms. CapEx hits the balance sheet first and the P&L slowly through depreciation.
Example
The board approved $40M in CapEx for the new fulfillment center, depreciated over ten years.
When you'll hear it
CapEx shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to capital expenditure — and they expect the room to already know what that means.
FAQs
What does CapEx stand for?
CapEx stands for Capital Expenditure.
What does CapEx mean in business and finance?
Money spent acquiring or upgrading long-lived assets — buildings, equipment, software platforms. CapEx hits the balance sheet first and the P&L slowly through depreciation.
Where will I hear CapEx used at work?
CapEx comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for capital expenditure, so people assume you already know the term.
Related terms
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