What is CapEx (Capital Expenditure)?

CapEx (Capital Expenditure) refers to the money spent on buying fixed physical assets or on upgrading existing ones to extend their use. Examples of capital expenditure include the expenditure incurred on purchasing or upgrading equipment, vehicles, buildings, properties, etc.

CapEx spending is of prime importance for companies for the maintenance of existing property and equipment, and to invest in new technology and various assets for growth.