Quick Definition

Capital expenditure (CapEx) refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Examples

• 1A manufacturing company purchasing new machinery to increase production capacity.
• 2A retail chain expanding its operations by opening new stores.
• 3An IT company investing in new servers and hardware to enhance its data center capabilities.
• 4A transportation company buying new vehicles to expand its fleet.

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