Financial Statements
Capital Expenditures
Money spent to buy, improve, or maintain long-term assets.
Also called: capex, capital spending
What it means
Capital expenditures, often called capex, are cash outlays for long-term assets such as property, equipment, facilities, or major systems. These costs are usually recorded on the balance sheet first and then recognized over time through depreciation or amortization when applicable.
Why it matters
Capex can support growth, but heavy spending also reduces free cash flow in the near term.