FINANCIAL EXPRESSIONS

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FINANCIAL EXPRESSIONS

• Group 3
• Vanda Varzhapetyan
• Nune Ohanyan
• Liana Avagyan
• Lilit Martirosyan
• Hayk Grigoryan

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CASH COW
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CASH COW

• Cash cow - a company that pays out most of its
  earnings per share to stockholders as dividends.

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CASH COW
Cash Cow, if EPS DPS
or firm pays out
100 of its FCF to its
shareholders as dividends
SBU
SBU-strategic business unit EPS-earnings per
shareNI/Number of shares outstanding
DPS-dividends per sharetotal dividends/Number of
shares outstanding FCF-free cash flow
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CASH COW

• Cash cow - a company or division of a company
  that generates a steady and significant amount of
  free cash flow.

Question mark
Star
Cash Cow
Dog
A "cash cow" product has high market share in a
slow-growing market. A corporation would want to
have as many "cash cow" products as possible.
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CASH COW

• Cash cow generates unusually high profit
  margins. This profit exceeds the amount necessary
  to maintain the cash cow business, and the excess
  is used by the business for other purposes.

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CASH COW

gt

gt
gt
Companys Portfolio
Risk
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CASH COWRISKS

• Complacency - management ignores the need for
  change in dynamic market
• the firm is not investing in product improvements
  (distributing all earnings) and is essentially
  considering itself not in a growth market
• Over-milking

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REFERENCES

• www.roicopy.com
• www.cashcowchaching.biz
• www.compensationmaster.com
• www.cartoonstock.com
• www.philadelphia-reflections.com
• www.sidfaiwu.com
• www.dhhs.state.nc.us
•  http//www.clipartof.com/images/clipart/
• www.freeprintablecoloringpages.net
• www.pinoyvegetarian.com
• www.beautyreference.wordpress.com

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• THANK YOU ?