Cash Cow

Posted in Finance, Accounting and Economics Terms, Total Reads: 1152

Definition: Cash Cow

According to the BCG matrix, cash cow is the name given to the business segment which has a huge market share and is experiencing slow or negligible growth. Thus, it produces more cash than what it consumes and hence is a source of stable, continuous revenues for the firm.

All SBUs in the firm try to achieve the status of a cash cow as this is the most desirable status for any business.

Quite often, the revenues from cash cows are used to fund other businesses of the company.

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