Capex: Learn the capex formula

Learn the capex formula and master capital expenditure analysis, and explore the necessary skills to evaluate long-term asset investments effectively. Capital expenditure ( capex ) is the money an organization spends to buy, maintain, or improve its fixed assets. Learn about the accounting rules, tax implications, and examples of capex and its contrast with operating expense (opex). Learn what capital expenditure ( CapEx ) is, how it affects cash flow, balance sheet, and valuation, and how to calculate it. Find out the difference between maintenance and growth capex , and the types and importance of capital expenditures. The Union Budget defines capital expenditure (CapEx) as the funds allocated and utilised by the government to develop assets that contribute to a country's economic growth. This includes investments in infrastructure, machinery, healthcare, education, and other essential sectors.