Meaning of the word "capital expenditure" in English

What does "capital expenditure" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

capital expenditure

US /ˈkæpɪtəl ɪkˈspɛndɪtʃər/
UK /ˈkæpɪtəl ɪkˈspɛndɪtʃər/

Noun

funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment

Example:
The company approved a significant capital expenditure for new machinery.
Reducing capital expenditure can improve a company's short-term cash flow.