Negative Operating And Free Cash FlowPersistent negative operating and free cash flow signals chronic liquidity strain and inability to internally fund operations or capex. In real estate, this raises refinancing and completion risk for projects and makes the firm reliant on external capital under adverse conditions.
High And Rising LeverageAn increasing debt-to-equity ratio and reduced shareholders' equity materially heighten financial risk. Elevated leverage raises interest burden, reduces flexibility to pursue projects, and increases chance of covenant breaches, especially in cyclical property downturns.
Negative Profitability And MarginsNegative gross and operating margins indicate structural issues in pricing, costs, or project economics. Sustained unprofitability erodes equity, undermines reinvestment capacity and shareholder returns, and necessitates operational restructuring or asset sales to restore viability.