Definition

The portion of profits that a company reinvests back into its own business instead of distributing to shareholders.

Example

The company decided to use its plowback to expand its operations and improve its technology.

Conversation

Have you heard about the company's plan to use plowback for expansion?

Yeah, I think it's a smart move to reinvest profits like that.

I agree, it shows they are committed to growth and innovation.

Exactly! I can't wait to see how it all turns out.

Synonyms & Antonyms

Root Explanation

Plowback → The word is formed from "plow" (from Old English *plōwan*, meaning to turn up the earth) and "back" (meaning in the reverse direction). The term "plowback" refers to the act of reinvesting profits back into a business, metaphorically turning resources back into the ground for growth.

Memory Tip

Think of 'turning up the earth' ('plow') and then 'reversing' that action ('back') to remember that 'plowback' means reinvesting profits for future growth.

Visually Confused Words