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Podcast: The Winning Momentum Podcast with Scott Sinclair
Episode: 234. What is CAPEX? Financial Literacy for Business
Description: Bankers, investors, stakeholders always want to know about your CAPEX.CapEx means capital expenditure.When you buy a capital asset, you are making a capital expenditure.For example, you spend $1.0 million on a production machine that has a 20 year useful life. That’s an investment over 20 years and therefore you don’t expense the $1.0 million on your income statement the year you pay the money. Instead, you record that machine, the $1.0 million, on your balance sheet as a Capital Asset and then depreciate it over its useful life.  See the Episode on Depr...