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?
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.aspBob
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
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".
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