We usually hears the terms "CASH COW" when business is good, but what does it actually means? Here are some excerpts on the definitions.
1. "Cash cow" is also used sarcastically by sales and business people to describe a customer or organization that has no control over its spending. Quite often the term is used to describe government departments like Foreign Aid, and Highways and Social Security, where the spending is out of proportion to the services or goods received.
2. "Cash cow" is used in a Growth-share matrix to represent one of the four quadrants in the matrix. A "cash cow" product has high market share in a slow-growing market. A corporation would want to have as many "cash cow" products as possible.
1. A business, product or asset that, once acquired and paid off, will produce consistent cash flow over its lifespan
2. 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.
3. 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.
1. National Feedlot Corporation (NFC)....
