Capital Expenditure
Spending on plant, equipment and the like. Capital expenses usually purchase things that last more than a year; these expenses are therefore capitalized on the balance sheet, and depreciated annually.
capital expenditures investment & finance definition
Expen-ditures for big-ticket items that are expected to last several years.
Capital Expenditures
A capital expenditure refers to the money spent by company to buy new fixed assets or upgrade an existing fixed asset that will benefit its business beyond the taxable year.
Definition
Capital expenditures
Money spent by a company to add or expand property, plant, and equipment assets, with the expectation that they will benefit the company over a long period of time (more than one year). Also called capital outlay.
Capital Expenditures, or CAPEX spending refers to expenses that a business incurs to buy new assets or to add to, or upgrade, existing ones. These assets may include property, equipment or machinery, and even buildings.
Capital Expenditures Example
Some example of Capital Expenditures include new production equipment for a manufacturing company, a new commercial HVAC system in an office building, and the purchase of a neighboring warehouse.
A capital expenditure is an outlay of cash to acquire or upgrade a business asset. Common examples of a capital expenditure include the purchase of a new building, or the cost of significant upgrades to an existing facility.
Capital Expenditure
Amount used during a particular period to acquire or improve long term assets such as property, plant, or equipment.
Capital Gain ...
Capital Expenditures
The expenditure incurred during a particular period to acquire long-term assets such as land, plant, or equipment.
Capital Expenditure - CAPEX
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. This type of outlay is made by companies to maintain or increase the scope of their operations.
Capital Expenditures - Spending by a company on plant and equipment, shown in the consolidated statement of cash flows in the annual report. Also known as capital spending or capital investment.
Planned capital expenditure program
Budgeted or projected outlays for major expenditures on permanent or fixed assets as outlined in the corporate financial plan.
Growth, Net Capital Expenditure needs, Leverage, Risk
Value/Sales
Growth, Net Capital Expenditure needs, Leverage, Risk, Operating Margin ...
Capital expenditure is used most extensively in the oil, telecommunications, and utility industries. In general, capitalization is beneficial for companies because it allows for the delayed recognition of expenses.
Capital expenditure
A long-term investment in operations to expand or improve a company's production infrastructure. Net capital expenditures increase the company's portfolio of capital equipment.
Annual capital expenditure / annual earnings
You can name it capital use ratio. The less it is, the more earnings a company can retain for dividends or other higher-yield investment in the form of acquisition of other businesses.
capital efficiency The informal ratio of output divided by capital expenditure. The larger the ratio, the better the capital efficiency. capital employed Fixed assets plus current assets minus current liabilities. Capital employed...
[Harvey] adjusted basis The original cost of a property plus the value of any capital expenditures for improvements to the property, minus any depreciation taken.
The investment income may be used for the operation of the institution and for capital expenditures. Enhanced indexingAlso called indexing plus, an indexing strategy whose objective is to exceed the total return performance of the index.
In light of unemployment statistics, capital expenditure and output gap, since most of the time markets attach the greatest importance to interest rate differentials between currencies, ...
Free cash flow (FCF) is calculated by subtracting Capital expenditures from Operating cash flow. Cash Flow from Operations measures how much cash a company generates.
The capital expenditure item is a quicker way of finding out how heavily the company is investing than looking at the balance sheet (and then correcting for depreciation etc.) but it has two weaknesses: it does not record purchases not yet paid for ...
An even better measure of cash flow is free cash flow. Free cash flow represents the money that's left over after a company has allowed for capital expenditure costs.
Free Cash Flow = Cash Flow from Operations - Capital Expenditure ...
Free cash flow per share is a measure of how much cash per share a business generates after accounting for capital expenditures like equipment or buildings.
The reason is that certain cash expenses, known as capital expenditures, are not counted as expenses on an income statement.
Municipal Bond A debt security issued by a state or local government in the U.S. to raise money to finance capital expenditures. The expenditures can include funding a school, hospital, or other large building project.
Ratios used for this analysis include debt to equity ratio, debt to total capital ratio and the capital expenditure ratio.
4. Profitability Ratios ...
Investment cash flows: Cash received from the sale of long-life assets, or spent on capital expenditure (investments, acquisitions and long-life assets).
Proceeds of these bonds can be used for expenditures, debt service reserve funds and costs of issuing the bonds but not to refinance capital expenditures, so-called refunding issues.
Sources of funds provided from operations that alter a company`s Cash flow position: depreciation, deferred taxes, other sources, and Capital expenditures.
Related Links: ...
For instance, some investors segregate 'growth' capital spending from 'maintenance' capital expenditures (the capital spending needed to keep ongoing operations running) and subtract just the maintenance capital spending.
The convention among financial experts is to state cash flow on an after-tax basis. That's because taxes are a very real expense, and a change in operating expenses and capital expenditures (via depreciation) can change a company's total income tax ...
Qualified small issue bonds may be issued on a tax-exempt basis in an amount up to $1 million, taking into account certain prior issues, or an amount up to $10 million, taking into account certain capital expenditures incurred during the three years ...
It can reinvest the funds into future growth by building more factories, stores, hiring more employees, increasing advertising, or any number of additional capital expenditures that are expected to increase profits.
The trust structure is typically utilized by mature, stable, sustainable, cash-generating businesses that require a limited amount of maintenance capital expenditures.
 See also: Capital, Capital expenditures, Investment, Share, Cash
  
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