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 ?
Energy investors and industry executives are troubled that billions ($605 billion over the past five years) have been plowed back into acquiring companies, securing leases, drilling wells and producing hydrocarbons.
The Americans got off to a great start on the first nine and we just plowed back and plowed back,'' Woosnam said.
The key to intervention, Yotopoulos believes, is to "make sure the excess profits are not captured by a country's elite but are plowed back into the development process.