Capital Expenditure (CapEx)

Overview

Capital expenditure is spending a business incurs to acquire, maintain or improve its assets, such as land, buildings or equipment.

Common Use Cases

• Increasing production capacity.
• Upgrading infrastructure.
• Innovating with new technology.
• Acquiring strategic property.

Examples in Small Businesses

• Buying a new production machine.
• Renovating the company's premises.
• Investing in new management software.