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 ?
The MTA's new management team rolled out its vision Tuesday for improving transit in the San Fernando Valley through more local control and savings from greater efficiencies that would be plowed back into better services.
Most sadly, it will hurt California's economy because it will put an end to any pension monies being plowed back into the California economy.
All money is plowed back into the community,'' Anderson said.