What is Cash Cow?

A definition of Cash Cow

“A cash cow is a product or business unit that generates steady revenue and profits with limited investment. It’s part of the growth-share matrix but requires minimal capital to maintain its market position.”

Cash Cow in Business Glossary - What is a Cash Cow?

Business Glossary > What is Cash Cow?


Examples of Cash Cow in a Sentence:

Our flagship product has become a cash cow, funding our other research projects.

Investors often seek out companies with cash cows for predictable returns.

The smartphone line has turned into a cash cow for the tech company.

Why is Cash Cow Important in Business?

Understanding what a cash cow is helps businesses allocate resources effectively. It supports other business areas by providing financial stability with predictable cash flow, and strategic focus can ensure sustained profitability.

Know Your Niche Inside Out by Tomorrow: Learn everything you need to know about a niche from a report rushed to you in 24 hours, (or spend the next 3 weeks researching).

Associated Terms

Here are some associated business terms and synonyms for “Cash Cow”:

  • Profit Center
  • Revenue Generator
  • Consistent Earner

Apple’s Cash Cow

Apple’s iPhone is often cited as a cash cow, generating significant profits that fund innovation in other product lines. The iPhone’s market dominance allows Apple to invest in other areas while maintaining a strong financial position.

Final Notes on Cash Cow

Businesses relying on cash cows should monitor market changes to ensure ongoing success.

Balancing investment in cash cows and growth opportunities is vital for long-term success.


This has been a definition of Cash Cow meaning.

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