Weak Cash Conversion And Negative Free Cash FlowNegative free cash flow and a very low operating cash flow-to-net-income ratio point to poor cash conversion. Over the medium term this constrains funding for inventory, marketing and capex, raising reliance on external financing or equity issuance.
Historical Earnings VolatilityPast swings into negative net income indicate earnings cyclicality and execution risk. For retail of entertainment products, demand and inventory timing can cause profit variability, reducing predictability for planning and investor confidence over several quarters.
Moderate Leverage And Liability RiskWhile leverage is not excessive, a non-trivial debt load combined with cash flow weaknesses increases refinancing and liquidity risk. If cash generation remains constrained, liabilities could limit strategic flexibility and increase cost of capital over the medium term.