Cash Cow

Business, Legal & Accounting Glossary

Definition: Cash Cow



Full Definition of Cash Cow


A cash cow represents the division of a company that provides a steady and significant cash flow. A cash cow tends to operate in a mature industry with little competition. A cash cow requires minimal ongoing investment and the cash flow that a cash cow provides tends to be used to support other divisions and ventures. For example, the Microsoft Windows operating system could be considered a cash cow. This division employs a relatively small group of people (low cost) yet produces a very significant cash flow. Microsoft uses this cash cow to fund other ventures such as gaming consoles. The basis for the phrase ‘cash cow’ is the dairy cow which (after purchased) can be milked for a relatively long time with little cost.


Cite Term


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https://payrollheaven.com/define/cash-cow/
Modern Language Association (MLA):
Cash Cow. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 09, 2020 https://payrollheaven.com/define/cash-cow/.
Chicago Manual of Style (CMS):
Cash Cow. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/cash-cow/ (accessed: July 09, 2020).
American Psychological Association (APA):
Cash Cow. PayrollHeaven.com. Retrieved July 09, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/cash-cow/

Definition Sources


Definitions for Cash Cow are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February, 2020 | 4 Views.