Negative Equity / Solvency RiskNegative equity signals structural solvency risk and a negative debt-to-equity ratio, constraining financial flexibility. Over 2-6 months this can impair access to capital, raise refinancing or covenant risks, and force dilutive financing or asset sales to restore balance sheet health.
Negative Operating And Free Cash FlowsSustained negative operating and free cash flows undermine the company's ability to fund operations, capex and debt service from internal resources. Without improvement, reliance on external financing or asset disposal increases, posing a durable constraint on growth and operational continuity.
Persistent Negative Profitability MarginsConsistently negative gross, EBIT/EBITDA and net margins point to structural operational inefficiencies or pricing pressures. Over several quarters this reduces reinvestable earnings, weakens return prospects for shareholders, and makes it harder to achieve a sustained path to profitability.