CapEx (Capital Expenditure)

Capital Expenditure (CapEx) refers to the funds a business spends on acquiring, upgrading, or maintaining physical assets like buildings, machinery, or technology. These investments are made to improve future operations, increase efficiency, or expand the company's capabilities. Unlike operating expenses, which cover day-to-day costs, CapEx involves larger, long-term investments that typically benefit the company over several years. Examples include purchasing new equipment, constructing a new office, or upgrading existing infrastructure. Proper management of CapEx is essential for sustainable growth and maintaining a competitive edge in the market.