Investor Glossary-capexInvestor Glossary-capexInvestor Glossary-capexInvestor Glossary-capexInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Capex

The HTML to link to this page
 

Capex, an abbreviated word that signifies "capital expenditures," capex is the amount of money spent by a company to upgrade, acquire, or maintain depreciable and tangible long-term physical assets. A few examples of assets for which capex spending is applied include factory and manufacturing plant, operating equipment used for production, and machinery. Periodic capex expenses are expense allocations of the total capex amount as capitalized over the life of the related assets. Also called "capital spending" or "capital expense," capex can be a large expense item in manufacturing and owned distribution facility companies. Capex can be a very small expense income statement item or cash flow charge for a service company. The "capital" in capex comes from the accounting definition of capital expense where "capital asset" means the asset is long term and not bought or sold in the normal course of business. Capex is important in financial ratio measures such as "working-capital-to-capex" which measures the amount of operating spending compared with long-term plant investment and in "capex-to-total-debt" that measures investment relative to borrowing. Capex is sometimes further divided into "maintenance capex" (spend to keep companies running smoothly) and "expansion capex" (spend devoted to increase productive capacity).



Rate this capex definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: reverse mortgage, deferred revenue, 144a, current ratio, required rate of return, option premium, implied volatility, class C shares, ex-dividend, inflation, per diem, balance sheet, in escrow, cancelled check, margin rate, FICO score, stock split, 1035 exchange, average price per share, retained earnings, real GDP, 1031 exchange, Zero Cost Collar, ex-dividend date, 401a, LIBOR, open position, annual return, stock market close, deferred tax, minority interest, covered put, irrevocable trust, VIX, FTSE, liquidity ratio, wholly-owned subsidiary, APR, diluted share, limit order, command economy, debt service coverage, quality assurance, EBITDA, Key Rate Duration, phantom income, risk management, labor relations, dividends payable


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use