Deeply Negative ProfitabilityVery large operating and net losses are structural red flags: they erode retained earnings, limit reinvestment, and make it hard to cover fixed costs. Over months this undermines competitive position and requires sustained margin improvement to restore viability.
Precarious Balance Sheet / Negative EquityNegative equity and a highly leveraged position constrain financing options and raise insolvency risk. This structural weakness increases the cost of capital, may limit access to credit, and forces reliance on asset sales or dilutive capital raises to fund operations long-term.
Negative Operating Cash FlowOperations are not generating cash, so the company must rely on non-operational sources to fund activities. Persistent negative OCF is unsustainable long-term, increasing dependence on financing or asset disposals and reducing flexibility to invest in recovery initiatives.