capital expenditure
Long-term business spending
Capital expenditure is money spent to acquire or improve long-term assets—buildings, equipment, machinery, vehicles.
Distinguished from operating expenses, which cover day-to-day costs, capital expenditures appear on balance sheets and depreciate over time.
Often shortened to capex: The company's capex budget increased by twenty percent this year.
Asset value reduction over time
- amortizationGradual debt reduction schedule
- capitalizationUsing big letters properly
- useful lifeExpected functional duration
- book valueAsset minus accumulated depreciation
GAAP · write-off · impairment · tangible assets · intangible assets · fixed assets · balance sheet · cost basis
Process of building something
- renovationRestoring to good condition
- expansionIncrease in scope
- installationProcess of putting in
- upgradesImproved replacement versions
improvement · modernization · development · engineering · commissioning · procurement · project management · implementation
Tools for a task
- machineryCollective mechanical equipment
- buildingsConstructed enclosed structures
- propertySomething owned or inherent
- landEarth's solid surface
vehicles · fixtures · furniture · hardware · software · facilities · plant · real estate
Paved paths for vehicles
- bridgesStructures spanning obstacles
- utilitiesEssential infrastructure services
- telecommunicationsRemote signal transmission technology
- railwaysFixed-track transport systems
airports · ports · highways · tunnels · water supply · electric grid · sewers · public works
Distribution of shares
- fundingSupplying monetary resources
- payback periodDuration until costs recovered
- cost-benefit analysisSystematic comparison of advantages, disadvantages
- financial planningOrganizing future monetary goals
appropriation · fiscal year · hurdle rate · NPV · IRR · spending limits · authorization · budget cycle
depreciation
Asset value reduction over time
- amortizationGradual debt reduction schedule
- capitalizationUsing big letters properly
- useful lifeExpected functional duration
book value · GAAP · write-off · impairment · tangible assets · intangible assets · fixed assets · balance sheet · cost basis · salvage value
construction
Process of building something
- renovationRestoring to good condition
- expansionIncrease in scope
- installationProcess of putting in
upgrades · improvement · modernization · development · engineering · commissioning · procurement · project management · implementation · retrofit
equipment
Tools for a task
- machineryCollective mechanical equipment
- buildingsConstructed enclosed structures
- propertySomething owned or inherent
land · vehicles · fixtures · furniture · hardware · software · facilities · plant · real estate · production capacity
roads
Paved paths for vehicles
- bridgesStructures spanning obstacles
- utilitiesEssential infrastructure services
- telecommunicationsRemote signal transmission technology
railways · airports · ports · highways · tunnels · water supply · electric grid · sewers · public works · transportation networks
allocation
Distribution of shares
- fundingSupplying monetary resources
- payback periodDuration until costs recovered
- cost-benefit analysisSystematic comparison of advantages, disadvantages
financial planning · appropriation · fiscal year · hurdle rate · NPV · IRR · spending limits · authorization · budget cycle
- business financeaccounting, balance sheet, revenue stream, profit margin, budget
- budgetsbudget, budgets, annual budget, cash budget, federal budget
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
- business accountingaccounts payable, accountant, accounts receivable, accounts, accrual
- federal budgetfederal budget, appropriations, deficit, national budget, surplus
- public budgetbudget bill, budget deficit, budget surplus, budget vote, budget debate
capital expenditureoperating expenses
Routine business costs
operational costs · overhead costs · maintenance expenses · administrative expenses · maintenance costs
capital expendituredivestiture
Disposal of assets
capital income · asset sales · depreciation · investment returns
capital, capitalism, capitalist, capitalize, expenditure, capitals, expenditures, capitalists, capitalized