Declining Revenue TrendSustained revenue decline erodes scale advantages, reduces fixed-cost absorption and weakens supplier negotiating leverage. Continued shrinkage materially impairs profit recovery, limits reinvestment in channels or products, and makes operating leverage and turnaround execution more difficult over months.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flow drains liquidity and forces reliance on external funding or asset disposals. This constrains reinvestment, inventory purchasing and marketing, increases refinancing risk, and reduces strategic flexibility for multi‑quarter recovery plans.
Negative Shareholders' EquityNegative equity signals solvency stress and can limit access to credit or favourable terms. It increases the risk of covenant breaches, dilution if capital raises are needed, and reduces ability to absorb shocks, making medium‑term restructuring or recapitalization more likely.