Capex vs. Opex

Capex (Capital Expenditure) refers to money spent on acquiring, upgrading, or maintaining physical assets like buildings, equipment, or technology that provide value over a long period. Opex (Operational Expenditure), on the other hand, covers day-to-day expenses needed to keep the business running, such as salaries, utilities, or maintenance costs. Essentially, Capex investments are typically larger, one-time costs aimed at long-term growth, while Opex involves ongoing costs necessary for daily operations. Proper management of both ensures a healthy balance between growth investments and operational stability.