capital expenditure

Capital expenditures (CapEx) are funds used to acquire, upgrade, or maintain capital assets . Capital expenditures are reflected in the cash flow statement , and can be calculated by adding current depreciation with the change in plant, property, and equipment (PP&E) from the previous accounting cycle. The measurement shows how much a business invests in capital assets.

[Last reviewed in December of 2021 by the Wex Definitions Team ]

Wex

• ACADEMIC TOPICS
• law and economics
• COMMERCE
• commercial activities
• accounting
• banking
• finance
• financial services
• business law
• business organizations
• corporations
• wex definitions