CAPEX stands for capital expenditures, which are investments in physical equipment, property or other so called fixed assets to create future benefits. A fixed asset has a life expectancy of more than one year. This expenditure can include anything from building a whole new production plant to renovating a plant or repairing the roof of a building.

How much is a company investing in its future?

PP&E stands for property, plant and equipment. To calculate capital expenditure (CAPEX), subtract the current period PP&E from the prior period PP&E and then add depreciation. The reason that depreciation is added back is attributable to the fact that depreciation is a non-cash item.

For more information, The Main KPI Types has a list of some KPIs and their types.