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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | 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