capital expenditure

Primary tabs

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 updated in December of 2021 by the Wex Definitions Team]