Capex (Capital Expenditure)

Capital expenditure, also known as CapEx, refers to the money a company invests in the acquisition or upgrading of fixed, nonconsumable assets such as a building or a patent. There are two types of capital expenses: purchases made to maintain existing company operations or purchases that are intended to promote the future growth of the company. CapEx can be intangible such as a patent or tangible such as a printer. Both tangible and intangible CapEx are considered assets because they can be sold or seized if necessary. However, the assetʻs usefulness must exceed one year to be considered CapEx.