Weak Free Cash Flow And Cash ConversionSignificantly weaker FCF and low cash conversion reduce internally available funds for capex, dividends, and acquisitions. Over 2–6 months this constrains financial flexibility and heightens dependence on external financing for growth initiatives or unexpected needs.
Margins Well Below Prior Peak And VolatilePersistent margin gap versus prior peaks and recent volatility suggest structural mix, pricing, or cost pressures. Lower sustainable margins constrain long-term returns and limit the company's ability to convert revenue gains into durable profit expansion.
High Absolute Debt BurdenElevated absolute debt increases interest and refinancing risk and reduces capacity for large discretionary spending. Even with better ratios, high nominal leverage limits resilience in downturns and can impede strategic agility over the medium term.