Declining Revenue GrowthSustained revenue decline weakens scale economics central to staffing models, reducing utilization and billable hours. Over several quarters this undermines ability to cover fixed overhead, erodes client momentum, and makes it harder to finance investments that drive durable growth.
Negative Return On EquityA negative ROE shows shareholder capital is being eroded by losses, limiting the company’s ability to reinvest or pursue strategic initiatives. Persistent negative returns can constrain hiring, technology upgrades and competitiveness in tight labour markets.
Weak Cash Conversion From OperationsLow operating cash to net income and a drop in free cash flow signal poor conversion of earnings into liquid resources. This reduces buffers for payroll and client fulfilment, increases reliance on external financing, and raises vulnerability to sector slowdowns.