What is a cash cow?

"Cashcow" is a product, product group, or part of a company that continuously generates a large proportion of sales or profit and has a large market share in a stable, mature market.

The term comes from the BCG matrix, a model for portfolio analysis developed by the Boston Consulting Group (BCG) in the early seventies. The model is widely used by entrepreneurs, managers, marketing people and consultants to determine which parts of a company generate the most value.

A cashcow is seen as a stable and reliable source of income for a company, with which the company can finance other investments and growth opportunities.