A cross-sectional study aimed at determining the prevalence and cyst characteristics and estimating the financial loss due to cystic echinococcosis (hydatidosis) in cattle slaughtered at Bako municipal abattoir was conducted from November 2011 to April 2012. Out of 246 cattle examined, 29 (11.88%) were found to harbor visible hydatid cysts. Significantly higher infection was detected in cattle's with poor body conditions (P<0.05) than animals with medium and good body condition score. No significant variation was observed with regard to sex of animals. Regarding organ distribution, infections of the lung, liver, kidney, and spleen and heart were 47.2%, 38.88%, 8.33%, and 2.77% respectively. Of the total 36 hydatid cysts counted, 17(47%), 14 (38.88%), and 5 (13.88%) were found to be small-sized, medium-sized, and large-sized, respectively. Likewise, out of 36 cysts assessed, 18 (50%) were fertile, 4 (11.11%) sterile, and 14 (38.88%) calcified. Of the 29 fertile cysts subjected for viability test, 12 (27.77%) were viable while 8 (22.22%) were nonviable. Moreover, assessment of annual economic loss due to bovine hydatidosis at Bako municipal abattoir from offal condemnation and carcass weight loss was estimated at 180,792 ETB (Ethiopian Birr). Despite the moderate magnitude of infection detected currently, there seems to be an existing socioeconomic situation favorable for hydatidosis, and hence, it remains one of the most important diseases warranting serious attention for prevention and control actions in Bako district. Hence, establishment of well-equipped standardized abattoirs, creation of public awareness, and control of stray dogs are of paramount importance.