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Definitions from WordNet

Definitions from the Web

Term: Capital Expenditures

Definition: Capital expenditures refer to the funds allocated by a company or organization towards the acquisition, improvement, or maintenance of long-term assets, such as buildings, equipment, or property.

Sample Sentences:

1. The company's capital expenditures this year include the purchase of new machinery to increase production capacity.
2. The hospital decided to allocate a significant portion of its budget to capital expenditures in order to update its aging infrastructure.
3. When calculating the return on investment, it is important to consider the capital expenditures required for the project.

Usage 1: Accounting

Definition: In accounting, capital expenditures are expenses incurred by a company to acquire or improve fixed assets, which are expected to provide economic benefits beyond the current fiscal year.

Sample Sentences:

1. The company adjusted its financial statements to reflect the capital expenditures made during the reporting period.
2. Capital expenditures are recorded as long-term assets on the company's balance sheet.
3. The accounting department closely monitors the capital expenditures to ensure they align with the company's financial goals.

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Usage 2: Business

Definition: In a business setting, capital expenditures are investments made by a company to enhance its production capabilities, expand operations, or upgrade existing facilities.

Sample Sentences:

1. The company's board of directors approved a large amount of capital expenditures to modernize the manufacturing plant.
2. Recognizing the importance of innovation, the company allocated a significant portion of its budget to research and development capital expenditures.
3. Investing in capital expenditures can lead to long-term growth and improved competitiveness in the market.

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Usage 3: Finance

Definition: In finance, capital expenditures refer to the funds used by companies to acquire assets that are expected to generate income or increase their value over time.

Sample Sentences:

1. The finance department analyzed the potential return on investment for various capital expenditures before making a final decision.
2. It is essential for investors to evaluate a company's capital expenditures to assess its long-term profitability and growth prospects.
3. The company's stock price surged after it announced ambitious capital expenditures aimed at expanding its market share.

Related Products: Investing in Stocks