What is Capex (capital expenditure)? - Definition from WhatIs.com


Capex (capital expenditure)

Part of the Compliance glossary:

A capital expenditure (Capex) is money invested by a company to acquire or upgrade fixed, physical, non-consumable assets, such as buildings and equipment or a new business. 

There are two types of Capex – those that are invested in to maintain existing levels of operation within a company and those that are invested in something new to foster future growth. Customarily, regardless of the manner of investment, Capex is money spent with the intent of initiating future cash flow and a substantial return on investment (ROI).

Capex’s counterpart, operational expenditures (Opex), refers to the day-to-day costs of operation. A similar but not closely related term, forex, stands for foreign exchange.

See also: enterprise asset management (EAM), cost management, adaptive enterprise, capacity planning, business impact analysis (BIA)



This was last updated in February 2015
Contributor(s): Brita Van Fossen
Posted by: Margaret Rouse

Related Terms


  • Regulation Fair Disclosure (Regulation FD or Reg FD)

    - Regulation Fair Disclosure is a rule passed by the U.S. Securities and Exchange Commission that aims to prevent selective disclosure of information by requiring publicly traded companies to make pu... (SearchCompliance.com)

  • Freedom on the Net report

    - Freedom on the Net is an annual report on the extent to which people in countries around the globe can publish and access Internet content without undue restriction and have their rights respected. (WhatIs.com)

  • corporate performance

    - Corporate performance is a composite assessment of how well an organization executes on its most important parameters, typically financial, market and shareholder performance. (WhatIs.com)


  • Compliance

    - Terms related to compliance, including regulatory definitions and words and phrases about governance and mitigating IT risk.

  • Internet applications

    - This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Ask a Question About Capex (capital expenditure)Powered by ITKnowledgeExchange.com

Get answers from your peers on your most technical challenges

Tech TalkComment



    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.