Free Cash Flow CollapseA >200% drop in free cash flow is a material deterioration that constrains capital allocation flexibility. Even with solid accounting profits, such a collapse can impede capex, dividends, or deleveraging and may force external financing or strategic trade-offs.
Weak Cash ConversionVery low OCF-to-net-income and negative FCF-to-net-income indicate earnings are not converting to cash. This undermines earnings quality and could signal working capital stress or receivables/inventory issues, posing a lasting liquidity and operational risk.
Negative EPS TrendA material decline in EPS despite revenue gains suggests margin pressure, higher costs, or dilution effects. If prolonged, falling EPS can limit retained earnings, reduce reinvestment capacity, and weaken shareholder returns, challenging long-term financial momentum.