Words / R / Business

reinvestment rate

noun

B1CEFR level
55/100Rarity: uncommon
TechnicalRegister

The share of operating profit a company ploughs back to fund future growth.

Their growth is real, but a 90% reinvestment rate means almost none of it reaches free cash flow yet.

Similar: plowback ratio

Topic: Corporate finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Corporate finance