What is CAPEX?

CAPEX stands for Capital Expenditure. It refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CAPEX is often used to undertake new projects or investments by a company. Making expenditures on fixed assets will improve the scope or add economic value to the company. Capital expenditures are found on the balance sheet and are distinct from operational expenses (OPEX), which are expensed on the income statement.