Fast on their heels, CEO Unni Warrier resigned in March. The Cybermedia ship sailed off and away, rudderless in choppy waters, with no skipper or lead officer to guide it. Well, Cybermedia had been announcing as sales the delivery of its products to retail distributors. If the retailer couldn't sell them, they could be returned to Cybermedia without payment. Throughout its public history, Cybermedia's uncollected sales were growing at a faster rate than its collected sales.
Uncollected sales mean a company announces sales for which it receives no cash.
Thankfully, mere Fools could have seen the disaster coming. Now, some folks have had trouble digesting this Foolish ratio, so I'll try to be clearer this time through. The Foolish Flow is one of the most important elements of the Cash-King portfolio. It holds that non-cash current assets are, in fact, liabilities. Well, inventory and uncollected sales, which are listed as current assets, are actually weaknesses of a business.