Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

capital expenditure/spending

Capital expenditures or capex are investments in assets that will have a long life such as property, plant, and equipment. In accounting terms, the money spent will not run through the income statement directly but will appear on the cash flow statement. Capital investments will be depreciated and the depreciation expense will run through the income statement over multiple periods.

Capex differs from revenue expenditure, which in accounting terms is used to cover repair and maintenance charges...