Capital expenditure, or CAPEX cost, is defined as the money a business spends on acquiring, maintaining, or improving long-term assets to help the company’s operations. Examples of these kinds of assets include buildings, equipment, vehicles, and software. CAPEx costs are typically higher than operational expenditures (OPEX), which include things like rent, salaries, and advertising. Investing in CAPEX shows a company’s commitment to growth – investing in better tools, personnel and infrastructure to grow the business over the long term.