PDB Academy

Academy › Glossary › Fundamentals

Capital expenditure (capex)

Money a company spends to buy or upgrade long-term assets such as equipment and facilities.

FundamentalsIntermediate

Definition

Capex is found in the cash flow statement. Subtracting it from operating cash flow gives free cash flow. Capex-heavy industries such as utilities, telecoms and semiconductors need constant reinvestment.

Learn it in context with PDB Academy

Guides, short videos and a plain-English glossary in one place, with tools to try each idea on real market data. The basics are free.

Create a free accountOpen PDB Academy