Capital Expenditure

Definitions

1. Money spent on long-lived assets such as equipment, facilities, or infrastructure that are capitalized rather than treated as immediate operating expense. CapEx matters more in hardware and infrastructure-heavy businesses.

   In plain English: Spending on major long-term assets rather than day-to-day costs.

   Example: "The datacenter expansion was treated as capital expenditure, not normal monthly operating spend."

Related Terms

• Cost of Goods Sold
• Cost of Revenue
• EBITDA
• Free Cash Flow
• G&A
• Accrued Revenue
• Cash Flow
• Operating Expense
• Revenue Recognition