Word
capex
/ˈkæp.ɛks/
Countable & uncountable
Definition
n. Stands for Capital Expenditure. The money a company spends to buy, fix, or improve long-term assets like buildings, machines, or equipment.
n. Abbreviation for Capital Expenditure. Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, or technology. Often contrasted with operating expenses (opex) in financial reporting.
Examples
“The board approved a large capex budget for the new factory.”
“Management decided to increase capex this year to modernize their aging fleet of delivery trucks.”
“While the firm's revenue remained stable, a significant increase in capex for research and development facilities led to a temporary decrease in free cash flow.”
Examples
simple
“The board approved a large capex budget for the new factory.”
contextual
“Management decided to increase capex this year to modernize their aging fleet of delivery trucks.”
complex
“While the firm's revenue remained stable, a significant increase in capex for research and development facilities led to a temporary decrease in free cash flow.”
Collocations
Common phrases and expressions where native English speakers use the word “capex” in context.
Verb
01. allocate capex
“We need to strategically allocate capex to maximize our long-term growth potential.”
verb + noun
02. approve capex
“The committee will meet tomorrow to approve capex for the new warehouse project.”
verb + noun
03. capex peaks
“Analysts expect that capex will peak in the third quarter during the factory build-out.”
noun + verb
04. capex rises
“Total capex rises significantly when the company enters new geographic markets.”
noun + verb
Adjective
05. discretionary capex
“The board decided to defer discretionary capex until the market volatility subsides.”
adj + noun
06. heavy capex
“The semiconductor industry requires heavy capex to maintain cutting-edge production facilities.”
adj + noun
07. planned capex
“Our planned capex for the next fiscal year focuses on renewable energy infrastructure.”
adj + noun
Noun
08. level of capex
“The current level of capex is unsustainable given our recent decline in revenue.”
noun + prep + noun
09. reduction in capex
“A significant reduction in capex helped the firm preserve its cash reserves.”
noun + prep + noun
10. a surge in capex
“The tech sector saw a surge in capex as firms raced to build AI data centers.”
11. curtail capex spending
“Management moved to curtail capex spending to protect the company's credit rating.”
12. fund capex through debt
“The airline chose to fund its capex through debt rather than issuing new equity.”
Real-World Examples
“As the earnings season commences in Europe next week, capital expenditure (capex) plans will be under close examination, especially in the industrial and construction sectors.” “The capex plan depended on rising Brent oil prices and also assumed that Congress would approve a government bill to inject $40 billion to $60 billion in the company's capital to undertake exploration projects in the oil-rich subsalt region.” “Amazon projects $200 billion capex in 2026, up from $131 billion in 2025.” “When looking at national trends, U.S. firms are anticipated to cut their capex by 22%, followed by Russian companies at 19.2% and French firms at13.%” Etymology
A portmanteau of the words 'capital' and 'expenditure'. It emerged in the mid-20th century as a shorthand term in business accounting and corporate finance to distinguish long-term investments from daily operational costs.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Synonyms
Related words
- Exam level
- CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
- Level
- C1 · Advanced
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