WordVale

capital expenditure

money spent on long-term assets

In From the Business Pages

In more detail

money that a company or organization spends on buying, building, or improving long-term assets such as buildings, equipment, and machinery, which will be used for several years

Examples

• The company's capital expenditure for new factories totaled $50 million this year.

How to use capital expenditure

Capital expenditure (often abbreviated as capex) is used in accounting, finance, and business contexts to distinguish investments in long-term assets from everyday operating costs. It contrasts with operating expenditure (opex) and appears frequently in financial statements, annual reports, and budget discussions. The term is slightly formal and technical in nature.

Register: formal

Common phrases

• capital expenditure budget
• capital expenditure plan
• approve capital expenditure
• capital expenditure program
• reduce capital expenditure
• capital expenditure forecast

Synonyms

capital investment · fixed asset investment · asset acquisition · capital spending · long-term investment

Opposites

operating expenditure · revenue expenditure · current expense

Word family

capitalized · capitalize

A common mistake

Learners often confuse capital expenditure with operating expenditure, or incorrectly use it to refer to all types of business spending rather than specifically money spent on assets with long-term value.

Nearby in From the Business Pages

short seller, asset class, diversify, top line, year-on-year, quarter

Keep going

How to remember the words you read · Spaced repetition, explained