Sharp Revenue ContractionA rapid, structural decline in revenue reduces scale needed to absorb fixed costs and fund new projects. Over months this weakens operating leverage, undermines margin recovery, and limits reinvestment capacity—raising the risk that revenue-normalization will be slow or incomplete.
Zero Operating And Free Cash FlowNo cash generation from operations and nil free cash flow forces reliance on external financing to complete projects and meet obligations. Over 2–6 months this elevates liquidity and refinancing risk, constrains working capital, and may delay or cancel growth investments.
Elevated Leverage And Shrinking EquityIncreased leverage and falling equity reduce the balance sheet buffer against downturns and raise interest/covenant pressure. Structurally, this limits access to cheaper financing, increases refinancing risk, and can force asset sales or equity dilution if cash flows don't improve.