cash cow

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Related to cash cow: Bcg 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 ?
Olick also reported, “Carter is promising 20 percent cash return on most of his investments, and his "Texas Cash Cow Investments"is just the business model his clients want.
Last night, SNP Energy spokesman Callum McCaig MP said: "The Tories have been using the North Sea - and the north-east of Scotland's economy - as a cash cow for decades and we are getting precious little in return.
A MOTHER-OF-12 who used her children as a cash cow to claim more than pounds 52,000 in state benefits walked free from court yesterday after a judge said jailing her would just cause a further burden to taxpayers.
These machines have become a cash cow for the ATM companies and the big banks who own and finance them.
This was the biggest cash cow in the history of the world.
Having outlived the naysayers of the early '80s and survived its sometimes self-destructive tendencies, rap music has emerged as a cash cow for the music industry.
A corporate parent can use a cash cow to generate some of the cash needed for star SBUs.