pääomamenoa

Pääomamenoa, often translated as capital expenditure or CAPEX, refers to the funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, technology, or equipment. These expenditures are typically significant and are intended to benefit the company over a period longer than one accounting year. The purpose of capital expenditure is to improve efficiency, increase production capacity, expand operations, or meet regulatory requirements. Examples include purchasing new machinery, constructing a new factory, or upgrading a company's IT infrastructure. Capital expenditures are distinct from operating expenses (OPEX), which are the day-to-day costs of running a business, such as salaries, rent, and utilities. Accounting standards require that capital expenditures be capitalized on the balance sheet and then depreciated over their useful lives, rather than being expensed in the year they are incurred. This treatment reflects the long-term benefit these assets provide. Decisions regarding capital expenditure are strategic, as they involve substantial investment and have a significant impact on a company's future profitability and competitive position.