Capital expenditures (capex) are one of two types of expenses that are important in financial decision-making and analysis. Expenditures are the uses of a company's capital to fund its operations and decisions. Capital expenditures cover the purchase, acquisition, or maintenance of fixed or physical assets held for more than a year and used for growth or expansion.

Capital expenditure (CapEx) refers to funds a company uses to acquire, upgrade, or maintain physical assets such as property, industrial buildings, or equipment. These expenses are significant for business growth and operations, enabling firms to increase their asset base, improve efficiency, and sustain long-term growth. CapEx can include purchasing new machinery, upgrading technology, constructing new facilities, or making significant repairs. Unlike operational expenses, which cover day-to-day costs, CapEx investments are capitalized, meaning their cost is spread over the useful life of the asset through depreciation. Proper management of capital expenditure is crucial for a company's financial health, as it directly impacts future profitability and the company's ability to compete effectively in the market.