CAPEX: Importance of Capital Expenditure in Financial Planning

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CAPEX is an acronym for "Capital Expenditure" which refers to the funds used by a company to acquire, maintain, or improve long-term assets to improve the company's operations. These long-term assets can include property, plant, and equipment such as buildings, machinery, vehicles, and land. These are investments made by a company with the expectation of generating income or appreciation in value over an extended period of time.

CAPEX is a crucial component of a company's financial planning and budgeting process and is often included in the company's financial statements.

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