May 22, 2013 10:41AM ET U.S. Markets Open. S&P 500 +0.56% NASDAQ +0.38% Plans and Pricing

Plowback Ratio

Definition

The plowback ratio is the percentage of income that a company reinvests into its own operations. In other words, it is the percentage of net income that a company does not payout as dividends.

Formula

Plowback ratio = 1-(Total Dividends Paid/Net Income)

Related Terms

Dividend

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