Increased Financial LeverageHigher leverage increases financial risk and could strain cash flows, potentially limiting the company's ability to invest in growth opportunities or weather economic downturns.
Equity Ratio DeclineA declining equity ratio indicates reduced financial stability, which may affect the company's ability to secure favorable financing terms and maintain investor confidence.
Limited Cash Flow GrowthStagnant cash flow growth can constrain the company's ability to fund new projects, distribute dividends, or reduce debt, impacting long-term strategic flexibility.