capital outlay

Definition

Money spent to acquire, maintain, repair, or upgrade capital assets. Capital assets, also known as fixed assets, may include machinery, land, facilities, or other business necessities that are not expended during normal use. Capital outlays, also referred to as capital expenditures, are recorded by accountants as liabilities on company balance sheets.

Use capital outlay in a sentence

  • You should try to figure out what the capital outlay will be so that you can be prepared to handle what that may cause.

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  • You need to always decide whether the capital outlay will be worth it when you are taking on any risky venture.

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  • It seems surprising that semiconductors can be fabricated at all given the enormous capital outlay needed to build a fabrication facility.

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