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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
This way, Recto said there will be 'a 100-percent plowback rate.'
The plowback funds turned out to be a good investment for the counties.
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 1.2 billion board feet annually.
The only minor difference is that the growth rate g is expressed as a function of ROE and b, where b is the retention (plowback) ratio, e.g.: g = ROE * b.
The payout ratio is fixed at 0.3, respectively the plowback ratio is fixed at 0.7.
SGR represents the sustainable growth rate, calculated as the product of return on equity and plowback ratio.
First, the human capital was bound to the firm by the plowback provisions of the partnership agreement.
"The focus should now be on companies' capex deployment for the year and attributes that go with it in terms of plowback to the earnings cycle.
The high court's partial entry of judgment last week paved the way for its eventual plowback to farmers.
In addition to new laws, Recto noted 'there is the Supreme Court ruling on the IRA [internal revenue allotment] case, which now adds billions in revenue plowbacks to local governments.' Recto recalled that 'the ink had already dried on the proposed 2019 budget when this was promulgated.'
'In fact, tobacco and alcohol tax collections have always been bigger than government plowbacks to PhilHealth.