noun
- profits that are reinvested in a business rather than distributed to shareholders as dividends
Usage: business; finance
Examples
- The company used plowback to fund its expansion into new markets.
- High plowback ratios indicate management’s confidence in future growth.
- Investors prefer dividends, but the board chose plowback instead.
- The startup’s plowback strategy helped it avoid taking on debt.
- Plowback allows companies to grow without external financing.
- The annual report showed significant plowback of earnings.