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Cash cow

Definition

Cash cow.jpg

"Cash cow" is a colloquial term often used in business to refer to a product, service, or investment that consistently generates significant profits with minimal effort or investment required. This term derives from the metaphor of a cow that produces abundant milk, symbolizing a reliable source of income. Typically, a cash cow represents an established and mature asset within a company's portfolio, characterized by stable demand, low operating costs, and high profit margins. These assets often generate surplus cash flow, which can be reinvested into other areas of the business or distributed to shareholders as dividends.

Furthermore, the concept of a cash cow is central to portfolio management and strategic planning, as businesses seek to maximize returns on their investments while minimizing risks. Identifying and nurturing cash cows can contribute to long-term financial stability and growth, providing a steady stream of income to support innovation, expansion, and diversification efforts. However, it's important for businesses to continually monitor and adapt their strategies to sustain the profitability of their cash cows in dynamic and competitive markets.

Example sentences

The company's new software application has the potential to become a cash cow in the technology sector.

Our flagship product has evolved into a cash cow for the organization, generating consistent revenue streams.

The marketing team's campaign turned our product into a cash cow, exceeding sales targets.

The manufacturing division is exploring ways to streamline operations and turn underperforming products into cash cows.

Our research and development team is focused on innovation to create the next generation of cash cows.

idioms

Business idioms

phrases

Colloquialisms

Workplace communication

Corporate expressions

workplace jargon

Linguistic expressions

w2u

way2unknown

"Wrap your head around it" is a colloquial expression indicating the process of understanding or comprehending something challenging or complex. It suggests a need for mental effort and engagement to fully grasp the intricacies of a topic or situation. The phrase implies breaking down the information into manageable parts, asking questions, and exploring different perspectives to achieve understanding. Ultimately, it reflects the cognitive process of coming to terms with and making sense of difficult or abstract concepts.

Throw caution to the wind

"Throw caution to the wind" means to act recklessly or take a significant risk without concern for the potential consequences. It describes abandoning careful behavior in favor of bold, impulsive action, driven by a desire for excitement or reward. While it can lead to thrilling experiences and opportunities, it also involves the risk of negative outcomes.

Can you run it by me one more time?

"Can you run it by me one more time?" is a phrase used to request repetition or clarification of previously shared information. It indicates a listener's uncertainty or need for further understanding. This inquiry is commonly employed in both informal and professional settings to ensure clear comprehension. By asking for the details to be reiterated, the listener demonstrates a willingness to engage and a commitment to fully understanding the subject matter.

A drop in the ocean

"A drop in the ocean" is an idiom that describes a very small and seemingly insignificant contribution compared to the vastness of the entire issue. It highlights the disparity between minor efforts and the larger problems they aim to address, suggesting a negligible impact. However, it also implies that cumulative small efforts can lead to significant change, much like an ocean is made up of countless drops. This dual perspective is relevant in areas such as environmental conservation and social activism, where individual contributions collectively make a meaningful difference.

Light the strategy beacon

In essence, this idiom encourages individuals or groups to be proactive, decisive, and purposeful in their actions. It emphasizes the significance of having a clear strategy or plan in place to navigate through difficulties, make progress, or achieve success.

Cash cow

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