PLOWED BACK INTO Meaning and
Definition
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Plowed back into is a phrase that is often used in the context of finance and business, referring to the reinvestment or retention of profits or earnings into a company or a specific project. This term implies that instead of distributing the profits among shareholders or owners, the earnings are reinvested into the same business for various purposes, including expansion, research and development, capital expenditure, or debt reduction.
When profits are plowed back into a company, they essentially become internal capital that can be used to further improve or grow the business, whether through acquiring new assets, purchasing inventory, upgrading technology, or hiring additional staff. This reinvestment strategy is particularly common among startups or growing enterprises, as it offers the potential for faster growth and enhanced competitiveness.
By choosing to plow back profits rather than distribute them, companies can allocate resources to areas where they believe they can generate higher returns, ultimately benefiting shareholders in the long run. This strategy can help create a cycle of continual reinvestment and growth that contributes to the overall success and sustainability of the business.
In summary, "plowed back into" refers to the practice of reinvesting profits or earnings into a business instead of distributing them, aiming to enhance growth and value creation.
Common Misspellings for PLOWED BACK INTO
