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

Definition

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

Definitions

  • spin (PR, marketing)

    - Spin, in the context of public relations (PR) and journalism, is the selective assembly of fact and the shaping of nuance to support a particular view of a story. (WhatIs.com)

  • critical infrastructure

    - Critical infrastructure is the body of systems, networks and assets that are so essential that their continued operation is required to ensure the security of a given nation, its economy, and the p... (WhatIs.com)

  • log management

    - Log management is the collective processes and policies used to administer and facilitate the generation, transmission, analysis, storage, archiving and ultimate disposal of the large volumes of lo... (WhatIs.com)

Glossaries

  • 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

Share
Comments

    Results

    Contribute to the conversation

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