Definition of the word cash cow

The term "cash cow" is a business term that originated in the early 20th century. The expression is used to describe a product, service, or business operation that consistently generates a substantial amount of cash flow, often used as a financial resource to support additional or riskier ventures within an organization. The phrase "cash cow" was first coined in the 1920s, shortly after Harry D. Dow, the CEO of Procter & Gamble, invented the modern marketing concept. Ford Motor Company's Model T was already a significant financial success by that time, and Henry Ford referred to it as a "cash cow" in a 1922 interview. It's unclear whether Ford was the first person to use the term, but the expression rapidly gained popularity in the business world. The meaning of "cash cow" evolved during the 20th century, initially referring to a particular product that generated a substantial revenue stream within an industry. However, in the 1960s, it began to be used to describe entire companies or divisions that could self-sustain and fund other divisions' marketing or expansion costs. The expression's origin is believed to be associated with the farming industry, where farmers would keep a cow for milk production and later, sell the cow for meat when it became too old to produce. Similarly, businesses would continue investing in a product or service that consistently provided them with a significant return as its heyday came to an end. Nowadays, the phrase "cash cow" is commonly used to refer to any product, service, or division that provides a company with predictable financial benefits, serving as financial support for further development. In short, "cash cow" is a business term that represents a financial asset that generates consistent profits, particularly when a company needs resourceful financial support for their expansion or riskier ventures.