Capital expenditure refers to a company's total investment in tangible assets such as buildings, machinery, land, plants, and other real estate. They are used both at the start of a company and later in its life, when a new initiative, division, or investment is launched. When a company decides to invest in capital expenditures, it usually has the following objectives in mind: increasing the value of its assets, broadening the scope of its operations, increasing profit-making activities, and extending the useful life of the assets in question. In contrast to income statement items, capital expenditures are reported on the balance sheet. In the balance sheet, the total amount spent on capital expenditures is shown as an asset.  https://blog.happay.com/capital-expenditure-capex/