Collapsed Net Profit MarginNet margin near zero erodes retained earnings and leaves almost no buffer for cyclical shocks or capital needs. Persistently tiny profits impair the company’s ability to rebuild equity, fund organic growth, and maintain creditor confidence over the medium term.
Negative And Volatile Free Cash FlowNegative and inconsistent free cash flow constrains investment, dividend capacity and debt paydown. Reliance on external financing raises cost and execution risk, reducing flexibility to modernize plants or scale production, which weakens long-term competitiveness.
Rising Leverage And Declining ROEIncreasing leverage combined with falling ROE amplifies financial risk: interest burden limits reinvestment, and higher liabilities reduce resilience to commodity or demand shocks. This dynamic can restrict strategic choices and increase refinancing vulnerability.