In the context of businesses, capital expenditures refer to large-scale investments made in tangible assets that are expected to benefit the company for more than just the current financial year. CapEx is critical for companies to maintain or expand their operational capacity over the long term. Examples of CapEx include major renovations to a facility, the purchase of new machinery or equipment, and investments in technology infrastructure. These expenditures typically require a significant outlay of cash upfront and are usually depreciated over the life of the asset.