Capital Expenditure

Capital Expenditure (CapEx) refers to the funds used by a company or organization to acquire, upgrade, or maintain physical assets such as property, buildings, machinery, and equipment. Unlike regular operational expenses, which cover day-to-day operations, CapEx represents long-term investments aimed at enhancing productivity or expanding capacity. These expenses are typically significant and are often financed through loans or internal funds. Capital expenditures can greatly influence a company’s capacity for growth and efficiency, impacting its overall financial health and competitiveness in the marketplace.