INDUSTRIAL LIFE CYCLE

Prepared by: Muhammad ZubairG.C. University Faisalabad

Banking & Finance

Birth/Infancy

Decline

Maturity

Growth

Industry/business/product life cycle

Birth/Infancy

• It’s the initial stage • Maximum cash outflows• Cash inflows are minimum/zero• Almost the industry/business/product is in

loss at this stage

Growth

• Cash outflows start decreasing• Cash inflows start increasing• Credit repaying ability is minimum/zero

because the co. try to invest more and more in business to compete the market and for the expansion of business.

Maturity

• Cash outflows are minimum• Cash inflows are maximum• To keep away from loss or lower profits

research and development is much necessary.

Decline

• Cash inflows start decreasing• Cash outflows start increasing rapidly• Low research and development or no

innovation• Investment start decreasing