High LeverageMaterial leverage raises interest and refinancing risk, reducing financial flexibility to invest or withstand downturns. Over 2–6 months elevated debt levels can limit strategic options, increase sensitivity to rate moves, and constrain the company's ability to delever while funding growth capex.
Declining Revenue GrowthFalling top‑line growth undermines scale benefits and makes fixed costs harder to absorb, putting pressure on margins despite recent improvements. If revenue trends do not reverse, long‑term earnings momentum and investment capacity may be impaired, limiting sustainable profit expansion.
Weak Cash Flow ConversionPoor conversion of accounting profits into free cash reduces ability to pay down debt, fund capex or return cash to shareholders. Over months this elevates reliance on external financing, increases refinancing risk given leverage, and can limit execution of strategic investments despite margin gains.