Capital Expenditure
Capital expenditure (CapEx) is the funds a company allocates to acquire, maintain, or upgrade long-term assets such as machinery, equipment, or property. Unlike operational expenses, CapEx focuses on investments that enhance a firm’s capacity or efficiency, often yielding benefits over years. For example, purchasing new factory equipment or renovating a building qualifies as CapEx. It’s a key indicator of a company’s growth strategy and financial commitment to future operations, typically funded through cash reserves, loans, or equity, reflecting its ambition to expand or sustain competitiveness.
Related Terms
Bought Out Deal
A bought-out deal is a stock offering where an investment bank purchases the entire issue...
Assets
An asset is anything that holds economic value and is owned by an individual, company,...
Convertible Bonds
A convertible bond is a hybrid security that functions initially as a debt instrument, paying...
Comparable Company Analysis
Comparable Company Analysis (CCA) is a method used to assess a company's value by comparing...
Backtesting
Backtesting involves testing trading strategies or models against historical data to evaluate their effectiveness. It’s...
Returns Regular
Returns from regular plans are slightly lower than those from direct plans, mainly due to...
