Cash Cow

Cash Cow
1. One of the four categories (quadrants) in the BCG growth-share matrix that represents the division within a company that has a large market share within a mature industry.

2. A business, product or asset that, once acquired and paid off, will produce consistent cash flow over its lifespan.

1. A cash cow requires little investment capital and perennially provides positive cash flows, which can be allocated to other divisions within the corporation. These cash generators may also use their money to buy back shares on the market or pay dividends to shareholders.

2. This term is a metaphor for a dairy cow that produces milk over the course of its life and requires little maintenance. A dairy cow is an example of a cash cow, as after the initial capital outlay has been paid off, the animal continues to produce milk for many years to come.


Investment dictionary. . 2012.

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Look at other dictionaries:

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  • cash cow — n. Business Slang a profitable asset or resource, as a subsidiary company, producing excess funds that are used to finance investment in other areas, support unprofitable ventures, etc …   English World dictionary

  • Cash cow — In business, a cash cow is a product or a business unit that generates unusually high profit margins: so high that it is responsible for a large amount of a company s operating profit. This profit far exceeds the amount necessary to maintain the… …   Wikipedia

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  • cash cow — A company that pays out most of its earnings per share to stockholders as dividends. Or, a company or division of a company that generates a steady and significant amount of free cash flows.. Bloomberg Financial Dictionary * * * cash cow ˈcash… …   Financial and business terms

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