What does capital expenditure mean?
Definitions for capital expenditure
This dictionary definitions page includes all the possible meanings, example usage and translations of the word capital expenditure.
the cost of long-term improvements
Funds spent by a company to acquire or upgrade a long-term asset.
Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof.Capital expenditures contrast with operating expenses (opex), which are ongoing expenses that are inherent to the operation of the asset. Opex includes items like electricity or cleaning. The difference between opex and capex may not be immediately obvious for some expenses; for instance, repaving the parking lot may be thought of inherent to the operation of a shopping mall. The dividing line for items like these is that the expense is considered capex if the financial benefit of the expenditure extends beyond the current fiscal year.
Capital expenditures are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year.
The numerical value of capital expenditure in Chaldean Numerology is: 8
The numerical value of capital expenditure in Pythagorean Numerology is: 5
Examples of capital expenditure in a Sentence
Now we think the schedule will have to be earlier, we thought production would stabilise in 2014 but now with the oil price falling and with all the announcements of capex (capital expenditure) cuts it is likely to accelerate the production decline.
The impact of lower oil prices on company plans has been brutal. What began in late-2014 as a haircut to discretionary spend on exploration and pre-development projects has become a full surgical operation to cut out all non-essential operational and capital expenditure.
This year we want to be more rigorous and critical before venturing into an investment...with disciplined control of capital expenditure.
A lot of our projects are long term to have production in five or six years. And that is a problem. If you are cutting capex (capital expenditure) drastically now - we can have a lack of production in four or five years creating a new increased oil price at $200 maybe, what we need is stability... OPEC is like the central bank for oil which must give stability to the oil prices to be able to invest in a regular way.
Manufacturers' sentiment is leveling off while capital expenditure holds firm. I'm watching how fears of trade protectionism may affect corporate capex planning from now on.
Translations for capital expenditure
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"capital expenditure." Definitions.net. STANDS4 LLC, 2023. Web. 28 May 2023. <https://www.definitions.net/definition/capital+expenditure>.
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