plow back

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Plow back

To reinvest earnings in a business rather than pay out them out as dividends. Common practice in high-growth companies.

Plow Back

To reinvest a company's earnings into its operations. A high growth company often plows back the majority of its earnings rather than pays out dividends in order to maintain its high growth rate. On the other hand, established companies tend to plow back very little, unless they are attempting to corner or create a new market. The plowback ratio tells investors the rate at which companies do this.

plow back

To reinvest earnings in additional income-producing assets. Firms that plow back earnings rather than paying the earnings in dividends tend to experience more rapid increases in earnings per share.
References in periodicals archive ?
Because of the intensity of management made possible to a significant degree by the plowback funds, by 1970 the non declining even-flow allowable cut level for the O&C lands - that is, the amount deemed available for harvest each year without causing reductions in future harvests - had risen to 1.
SGR represents the sustainable growth rate, calculated as the product of return on equity and plowback ratio.
For general and limited partners, these bonuses did not represent pure income: General partners had a mandatory plowback ratio of 80 percent while that of limited partners was lower.
First, the human capital was bound to the firm by the plowback provisions of the partnership agreement.
It is highly unlikely that he would have been able to bring all the companies into line to make good on his offer of a total plowback of profits into research and development.
18, 2003: Headline of release should read SuperMajors Capital Exodus from North American Upstream Moves Into Fifth Gear; Stepped Up Divestitures & Low Plowback of Operations CashFlow (sted John S.
Total plowback of the Majors' cash flow this year comes to only 40%; addition of divestiture proceeds brings the ratio down to a mere 34%.