The link between BCG matrix and balance sheet

The BCG matrix categories a business into this 4 class Star, Cash Cow, Dog, and Question Mark. But what is the link to their balance sheet.

For Question Mark – You will see the business is investing more into their asset to generate profit and also see their P&L will have high interest expenses. This will be business like Air Asia that looking for growth.

For Cash Cow – You will see their asset remain stable but their liability reduce year by year. This is because they use the cash to generate better profit.

Star – You will see they have strong liquidity and they have right balance between fixed asset and current asset. And the AR and Inventory turns will be high.

Dog – I just don’t need to say anything.