Capital Expenditure

Capital expenditure, abbreviated as CapEx, is the amount of money that needs to be spent on a project to see it from design through completion.

 

capital expenditure Formula

\(\large{ CapEx = PPEC - PPEP + DE  }\)

Symbol

\(\large{ CapEx }\) = capital expenditure

\(\large{ DE }\) = depreciation expense

\(\large{ PPEC }\) = PP&E current year

\(\large{ PPEP }\) = PP&E previous year

\(\large{ PP }\)&\(\large{ E }\) = property, plant, and equipment