What is the name given to the ratio of investment to gross cash flows?

Question

Quizplus · Accepted Answer

The plowback ratio, also known as the reinvestment ratio, is the ratio of investment to gross cash flows. It represents the portion of earnings that a company retains for reinvestment in the business rather than paying out as dividends to shareholders. The other answer choices do not relate to this specific ratio. The payout ratio is the percentage of earnings paid out as dividends to shareholders, the retention ratio is the percentage of earnings retained by a company after dividends are paid, and the debt to equity ratio is a measure of a company's financial leverage.

What Is the Name Given to the Ratio of Investment