Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I always though "capex" just meant "investment" but today I saw a company guidance in which "capex" was a separate item among all the investments listed and, incidentally, the smallest.

Can anyone explain the difference?
Print the post Back To Top
No. of Recommendations: 0
Capex is generally capital expenditure which is not really an investment or maybe only an investment of a particular type that will improve a company's future business.
http://www.investopedia.com/terms/c/capitalexpenditure.asp

Bob
Print the post Back To Top
No. of Recommendations: 1
You're right, capex is another way of saying that you're investing new money into the existing business. However, a company's capex doesn't include acquisitions, and it doesn't include a company's investments in treasuries, bonds, securities, or anything else. So although capex is an investment by a company, it's not the only investment the company can make.

If you look at the cash flow statement of a company, you'll see capex listed under the Investing Cash Flows section. You'll see that capex is only one of several investments a company can make.


Mike
Print the post Back To Top
No. of Recommendations: 0
Thank you and Cabob for you explanations.

I am a former journalist and now work as a translator and realize I have been wrong in using "investment" in such a loose way as a replacement for "capex".
Print the post Back To Top