Definition
CapEx is spending on long-lived assets (equipment, capitalized software). CapEx affects cash flow differently than operating expenses.
Measured as
Measure CapEx (Capital Expenditures) with the same date, unit basis, and accounting or policy definitions used in the rest of your model.
Operator takeaway
- Tie CapEx (Capital Expenditures) to the same balance-sheet date, scenario, and decision memo you are using elsewhere in the model.
- Document which claims, costs, or adjustments your team includes before comparing numbers across forecasts, covenants, or valuation work.
Next decision
- Decide whether CapEx (Capital Expenditures) belongs in cash planning, valuation, or debt monitoring so the number is used in the right model.
- If the number changes, trace the timing, policy, or balance-sheet assumption behind it before you react.