Capital expenditures, or CapEx, refer to funds used by a company to acquire or upgrade physical assets such as property, buildings, equipment, and technology that are used in the company's operations. Some examples of CapEx include purchasing land, buildings, machinery, vehicles, software, and intangible assets. Making wise CapEx decisions is important for a company's short-term and long-term financial health. There are two main types of CapEx - those for maintaining current operations and those that enable future growth. Capital expenditures are significant financial commitments that are difficult to reverse and have long-term effects on a company's production and activities.