Weak Free Cash FlowSignificantly negative free cash flow growth and a low operating‑cash‑to‑net‑income ratio indicate cash generation lags accounting profits. Persistently weak FCF undermines the firm’s ability to fund capex, pay dividends or reduce debt organically, forcing reliance on external financing and raising medium‑term liquidity risk.
Moderate LeverageA debt/equity of 1.15 reflects meaningful leverage that reduces financial flexibility. Combined with constrained cash flow, this leverage increases vulnerability to higher rates or revenue shocks, limits capacity for opportunistic investment, and raises refinancing and interest‑coverage risks over the coming months.
Declining Net Profit MarginA drop in net margin to 9.63% signals rising costs or non‑operational pressures that erode bottom‑line conversion despite strong gross margins. Persistently lower net margins reduce retained earnings, constrain deleveraging and weaken the company’s shock absorption capacity in a cyclical downturn or periods of higher financing costs.