I'm trying to get a clear idea of what these two terms mean. Udemy and other instructional videos I'm learning from are just showing numbers, but then you go to a cash flow statement and the numbers are negative. I'm getting totally opposite definitions online as to what the differences are. Site A say: A negative Capex entry on a cash flow statement indicates money is leaving the company for these expenditures. This means the company is investing money to drive future growth. Site B negative CapEx refers to expenditures that do not generate future cash flows or do not increase the value of a company’s assets. I posted this question to an accounting site and it got removed.
To add this this, the only definitions that make scene to me is this one below. But again, the explanation differs depending on what sites you search: Is capital expenditure positive or negative on the Cash flow statement? Examples of positive CapEx may include investing in new technology, expanding facilities, or developing new products. Positive Capex on a balance sheet indicates that money is coming into a company from sales of existing capital assets. A company might have positive Capex when it is divesting of assets. Potential investors might see this as an indication that management lacks confidence in the future of the business. It can also be a sign that a company is not spending enough to maintain current operations and drive growth. On the other hand, negative CapEx entry on a cash flow statement indicates money is leaving the company for these expenditures. This means the company is investing money to drive future growth. Investing in long-term capital assets, such as acquiring a new business or purchasing real estate and equipment, would result in negative Capex cash flow. However, such capital outlays often reflect an optimism and aggressiveness on the part of company management and are seen as healthy for a company rather than negative. Here is the source link by the way. Like I said, this is the only definition i can find that makes sense to me. All the other sites I google are saying different things. https://www.techtarget.com/whatis/definition/CAPEX-capital-expenditure
