Glossary

Capital Expenditure (CapEx) refers to the money spent by a company to acquire, maintain, or upgrade its long-term physical assets, such as property, plant, and equipment (PPE).

These investments are aimed at improving the company's operations and production capacity or boosting future growth. CapEx is crucial for businesses to remain competitive and efficient in the long run. 🏭

For example, a car manufacturer may spend $1 billion to construct a new production facility to increase its manufacturing capacity and meet growing demand for its vehicles.

Fun fact: Some of the largest capital expenditures in history include the construction of the International Space Station at an estimated cost of $150 billion and the development of the Airbus A380, which had a total CapEx of approximately $25 billion. ✈️