Capital Expenditure (CAPEX)

Description of Capital Expenditure. Explanation.

Definition Capital Expenditure (CAPEX). Description.

Capital Expenditure is an expenditure used by a company to acquire or upgrade physical assets such as equipment, property, industrial buildings.

It is the funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment. In accounting, a capital expenditure is added to an asset account (i.e. capitalized), thus increasing the asset's basis.

It is also referred to as investment.

Compare: Return on Investment

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End of description Capital Expenditure. An explanation.