What is Capex and Opex
Kraus & Partner - Lexicon - economic terms simply explained
Definition and explanation of the management term "CAPEX":The term capex, 'Capital Expenditure ', in English: Capital expenditure is used in the area of internal accounting. This describes the capital expenditures of a company that arise when acquiring longer-term assets. (e.g. machines, buildings, vehicles or IT systems)
Capex + Opex = Totex (total company spending)Together with the variable operating costs, which are composed, for example, of energy and personnel expenses or the costs of purchasing raw materials, consumables and supplies, the capex form the total expenses of a company. The current operating expenses are also referred to as Opex, 'Operational Expenditure' and the total expenses as Totex, 'Total Expenditure'.
CAPEX: important parameter in the balance sheetIn contrast to the Capex, the Opex relate to short-term balance sheet items or assets (e.g. material expenses, personnel costs). The Capex expenses, on the other hand, relate exclusively to long-term investments in fixed assets and represent an important parameter in the balance sheet.
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