cash cow

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Related to cash cows: Bcg matrix, Growth Share Matrix

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 flow.

Cash Cow

In growth share matrices, the quadrant representing companies, especially subsidies, that produce large profits with little need for cash injection because they have large market shares in slow-growing markets. A cash cow is not necessarily experiencing growth; if it is growing, it is almost always very slow. Corporations want to own cash cows, as they require little oversight compared to the profits they produce. See also: Marketing, Portfolio analysis.

cash cow

A business or a segment of a business that produces significantly more cash than it consumes. As an example, a firm may sell a product that requires minimal advertising and promotional expenditures but continues to generate revenues year after year. Firms sometimes use cash cows to provide cash for financing other segments of their business.

cash cow

References in periodicals archive ?
A large unserved football market like Los Angeles is a valuable asset to team owners who can use the threat of relocation to extort public subsidies from their current cities to build them state-of-the-art stadiums that become cash cows for the owners.
They have seen that massive public-works projects can easily turn into cash cows for the well-connected.
It is our belief that Domenici's attitude clearly reflects that of many of his cohorts, who also see the heavily burdened public as cash cows to be milked at will.
Chart (1--Color) DOW INDUSTRIALS (2--Color) BIZ FACTS CASH COWS Top five dairy states, ranked by cash receipts in billions of dollars, 1993.