What is CAPEX?

CAPEX, or Capital Expenditure, is a term used to refer to the money that a company spends on acquiring or upgrading physical assets such as property, buildings, or equipment. This is in contrast to operating expenses (OPEX), which are the ongoing costs of running a business, such as salaries, utilities, and supplies. CAPEX is typically a one-time expense, while OPEX is an ongoing cost. CAPEX is often used in the context of large, long-term investments that are expected to provide value to a company over many years, such as building a new factory or purchasing a new piece of equipment.