Capital Expenditures (CAPEX) is money invested by a company for the long-term purpose of growing its business. CAPEX investments are typically related to the acquisition of physical assets like real estate, new equipment and vehicles. These items can be depreciated over time and are not expected to be used up within the current year.

Operating Expenses (OPEX) are day-to-day costs necessary to keep a business running. These expenses include utilities, maintenance, rent, wages and taxes. They are generally things that need to be paid for on a regular basis, and are expected to be used up within the current year.