# Capital Expenditure (CapEx)

Cash spent on property, plant, and equipment.

## Definition

Capital expenditure is the cash a company spends to acquire, upgrade, or maintain physical assets like buildings, equipment, and infrastructure. Distinguished into 'maintenance capex' (keeping current operations running) and 'growth capex' (expanding capacity).

## Why it matters

Capex intensity defines the business model. Software businesses spend 1–3% of revenue on capex; railroads and utilities spend 15–20%+. High capex intensity is fine if returns on that capex are high — and a problem if not.

## How Standard Equity uses it

Used to compute free cash flow (operating cash flow − capex), which feeds every FCF figure in the report.

## The metric

| Category | Cash Flow |
| -------- | --------- |
| Unit     | $M        |

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