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capital expenditure

capital expenditure

4 6.4
Money a business spends to buy or improve things like buildings, machines and equipment that last a long time
  • noun
  • /ˈkæpɪtəl ˌɛkspɛnˈdɪtʃər/
  • Specialized
translation icon : gasto de capital
  • The company allocated a significant portion of its budget for capital expenditure to enhance its production facilities.
  • capital expenditures and R&D
  • capital expenditures in future budget
  • operations and capital expenditures

Examples

  • Instead, the company focused on load-leveling, deferring capital expenditures, and increasing the reliability of its multi-state electric grids.

    Academic text (2009)
  • The initial capital expenditure involved in purchasing equipment is large.

    Academic text (2016)
  • As there has been large capital expenditure or other projects, I would expect dividends to increase.

    Blog text (4)
  • In the 1990s, capital expenditures of the US electricity sector were about 12% of total revenues.

    Academic text (2004)
  • The Company's actual cash payments for capital expenditures during 2012 were $8.3 billion.

    Blog text (22)
  • In NSW, electricity networks are undertaking capital expenditure of $17.4 billion over the five years to 2013/14.

    Blog text (20)
  • The rates at which capital expenditures can be depreciated for tax purposes vary considerably across G-7 countries.

    Academic text (1993)
  • In Canada and the United Kingdom, R&D capital expenditures are fully deductible from taxable income in the year they are incurred.

    Academic text (1993)
  • A PVC liner and a retention pond added nearly $200,000 in capital expenditures.

    Academic text (1996)
  • To maintain its competitive edge, the organization plans to increase its capital expenditure on advanced technology and equipment.

Synonyms

capital cost
vscapital expenditure
  • Specialized
4 3.6

Money spent to buy things like machines or buildings for a business

includes later spending to upgrade or maintain long term assets

How Much

capital expenditure
  • Specialized
4 6.4

Surface Forms

Morphology

capital + expenditure

The meaning is directly compositional: 'capital' (funds or resources) combined with 'expenditure' (money spent) yields 'money spent on capital/long-term assets', which a learner who knows both words can infer. This noun–noun compound is a standard, cross-linguistically common business collocation, so its sense should be transparent to a B1 learner.

Etymology

Capital expenditure paints a simple business picture: a company buying a big machine or a building. Capital is the word for the money or assets a company uses and expenditure means 'spending', so the phrase means money spent to buy or improve things that will last a long time.