Capex (Capital Expenditure)

What does Capex mean?

Capex stands for Capital Expenditure and describes investments in physical or intangible assets that are used in the long term. These include, for example, the purchase of hardware such as servers or network infrastructure as well as investments in software licenses or the construction of data centers. Capex is carried as an asset on a company’s balance sheet and depreciated over its useful life. Such expenditure serves to create or expand the basis for business operations.

Advantages and differentiation from Opex

Capex is derived from Opex (Operational Expenditure) which includes ongoing operating costs, such as maintenance or electricity costs. A key advantage of capex is that the investments made can be amortized over several years. Generate value and contribute to long-term stability of the company. Careful planning and management of capex is crucial in order to liquidity bottlenecks and at the same time secure competitive advantages through state-of-the-art infrastructure.