CAPEX
Long-term asset funds
CAPEX is a business abbreviation for capital expenditure—funds a company spends to acquire, upgrade, or maintain physical assets like property, equipment, or buildings.
These are major investments expected to provide value over multiple years, as opposed to operating expenses (OPEX) that cover day-to-day costs.
The board approved $2 million in CAPEX for new manufacturing equipment.
Financial analysts track CAPEX closely as an indicator of a company's growth investments and long-term strategy.
Asset value reduction over time
- amortizationGradual debt reduction schedule
- ROIProfit-to-cost ratio
- paybackRetaliation for wrongs
- NPVDiscounted future cashflows sum
IRR · profitability · valuation · write-off · impairment · capitalization · breakeven
Tools for a task
- machineryCollective mechanical equipment
- buildingsConstructed enclosed structures
- propertySomething owned or inherent
- landEarth's solid surface
vehicles · facilities · plant · hardware · fixtures · tangible · intangible · acquisition
Supplying monetary resources
- equityImpartial treatment or ownership value
- debtMoney owed another
- financingProviding capital for purchases
- leverageBorrowed capital for amplified returns
borrowing · loan · bond · liquidity · credit · syndication · leaseback · securitization
Increase in scope
- capacityMaximum amount containable
- scalingClimbing or resizing
- modernizationAdoption of current methods
- developmentProgress toward maturity
diversification · strategic · long-term · reinvestment · acquisition · footprint
Distribution of shares
- forecastingEstimating future conditions
- planningArranging for future events
- projectionSomething that extends outward
- estimationApproximate value judgment
appraisal · feasibility · prioritization · costing · evaluation · analysis · oversight · scheduling
Structures spanning obstacles
- roadsPaved paths for vehicles
- utilitiesEssential infrastructure services
- pipelinesTubes for transporting fluids
- telecommunicationsRemote signal transmission technology
railways · ports · refineries · warehouses · manufacturing · industrial · greenfield · brownfield
depreciation
Asset value reduction over time
- amortizationGradual debt reduction schedule
- ROIProfit-to-cost ratio
- paybackRetaliation for wrongs
NPV · IRR · profitability · valuation · write-off · impairment · capitalization · breakeven
equipment
Tools for a task
- machineryCollective mechanical equipment
- buildingsConstructed enclosed structures
- propertySomething owned or inherent
land · vehicles · facilities · plant · hardware · fixtures · tangible · intangible · acquisition · procurement
funding
Supplying monetary resources
- equityImpartial treatment or ownership value
- debtMoney owed another
- financingProviding capital for purchases
leverage · borrowing · loan · bond · liquidity · credit · syndication · leaseback · securitization
expansion
Increase in scope
- capacityMaximum amount containable
- scalingClimbing or resizing
- modernizationAdoption of current methods
development · diversification · strategic · long-term · reinvestment · acquisition · footprint
allocation
Distribution of shares
- forecastingEstimating future conditions
- planningArranging for future events
- projectionSomething that extends outward
estimation · appraisal · feasibility · prioritization · costing · evaluation · analysis · oversight · scheduling · approval
bridges
Structures spanning obstacles
- roadsPaved paths for vehicles
- utilitiesEssential infrastructure services
- pipelinesTubes for transporting fluids
telecommunications · railways · ports · refineries · warehouses · manufacturing · industrial · greenfield · brownfield · megaproject
CAPEXOPEX
Recurring business costs
operating expenses · operating costs · overhead · maintenance costs · administrative expenses
- capital lettersLarger alphabet forms
- fashion capitalCity known for couture
- state capitalAdministrative center of a state
- capital cityPrimary governmental center
- capital punishmentExecution by legal authority
- capital gainsProfit from asset sales