Capital expenditure refers to funds that are used by a company for long-term investments, such as purchasing new equipment or expanding facilities. These types of expenses are not considered routine operating costs and are instead viewed as investments in the growth and development of the business. Capital expenditures can also include spending on intangible assets like patents or copyrights, as well as acquisitions of other companies. The goal of making these types of expenditures is to improve efficiency, increase productivity, and ultimately drive up profits in the long run.