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Learn the capex formula and master capital expenditure analysis, and explore the necessary skills to evaluate long-term asset investments effectively. CapEx, or Capital Expenditure, is the money a company spends to buy, upgrade, or maintain long-term assets like buildings, land, machines, or equipment. These are big investments in physical assets that help the business run and grow over time. Capital Expenditure ( CAPEX full form) is the expenditure made by a firm to improve its long-term assets or to purchase new equipment. It serves as a potent financial metric and helps financial analysts understand a company’s investment patterns. Capital expenditure ( CapEx ) refers to the funds businesses invest in acquiring, upgrading, or maintaining long-term assets.