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Plow Back
(redirected from plowed back)

   Also found in: Dictionary/thesaurus, Encyclopedia 0.02 sec.
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.


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Several large companies incorporated in Bermuda and the Cayman Islands are eyeing a shift to Europe, ahead of legislation aimed at tightening rules that allow firms to defer tax payments on overseas profits if earnings are plowed back into foreign subsidiaries.
Frohnmayer said a tuition increase would move the university into what is known as a "high tuition, high aid" model, in which a portion of the additional tuition revenue is plowed back into financial aid.
Some of the money they make does quite naturally get plowed back into their hometowns but what those towns really need is an effective government and a return to normalcy, not the current lawlessness.
 
 
 
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