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 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)

 

Continue reading about Capex:

 > More on the difference between Capex and Opex

> Capital expenditures (Capex)

> What's all this fuss about telecom carrier Capex?

> Hybrid hosting -- marrying hosted cloud environments with little CAPEX

> Learn about CAPEX and data and cash flow

This was last updated in December 2011
Contributor(s): Brita Van Fossen
Posted by: Margaret Rouse

Related Terms

Definitions

  • shadow app

    - Shadow apps are software-as-a-service (SaaS) applications that are used on business networks but are not supplied by the IT department or even visible to them. Shadow apps are often collaborative ... (WhatIs.com)

  • records management

    - Records management (RM) is the administration of records and documented information for the entirety of its lifecycle, which includes creation, maintenance, use, storage, retrieval and disposal. (SearchCompliance.com)

  • GAAP (generally accepted accounting standards)

    - GAAP (pronounced "gap") stands for "generally accepted accounting principles," a collection of commonly followed accounting rules and standards for financial reporting. (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.