What type of investments does "CapEx" typically track?

"CapEx," or capital expenditures, typically refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment. The primary purpose of CapEx is to improve the long-term value of an asset or to expand the company’s operational capacity.

Significant property improvements are a key area of CapEx as they involve investments that enhance the value or extend the useful life of a property. These include major renovations, construction of new facilities, or substantial upgrades that increase the functionality or marketability of the property. Such expenditures are considered long-term investments, as they have lasting effects on the asset’s value and the company's operational capabilities.

In contrast, short-term renovations are often categorized differently, as they may not substantially enhance the property's value. Regular maintenance expenses are ongoing costs associated with ensuring that an asset remains in good working order, but they typically do not significantly increase the asset’s value or extend its lifespan. Employee training costs are considered operational expenses, aimed at enhancing employee skills, rather than investments in physical assets. Therefore, when tracking CapEx, the focus is on significant property improvements that contribute to a company's long-term growth and asset value.