Capital Expenditure

capital expenditure   n.  Funds spent for the acquisition of a long-term asset.

capital expenditure

The purchase of an asset by a firm.

Capital Expenditure - CAPEX

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Investopedia Commentary

This can include everything from repairing a roof to building a fire escape.

See also: Capital Asset, Capital Budgeting, Capital Goods

Also spelled: CAPEX

capital expenditure

Funds used to acquire a long-term asset. A capital expenditure results in depreciation deductions over the life of the acquired asset. Also called capital outlay.

Main Entry: capital expenditure
Function: noun
: an amount paid out that creates a long-term benefit (as one lasting beyond the taxable year); especially : costs that are incurred in the acquisition or improvement of property (as capital assets) or that are otherwise chargeable to a capital account
NOTE: Capital expenditures are not deductible for income tax purposes. They are generally added to the property's basis.