What does Capex mean?
Purchase of Fixed Assets is commonly referred to as Capital Expenditures. Capital Expenditures encompass all expenditures for factories and equipment that have a useful life of more than one year. These expenditures are not treated as an expense on the income statement when they are incurred. Rather, they are capitalized, meaning that they are expensed over time.
Capital Expenditures consist of expenditures that are necessary to maintain the existing plant and equipment in premium condition, and discretionary expenditures for growth.
