Negative Profitability MarginsPersistent negative net profit and EBIT margins indicate the company is not converting revenue into operating or net earnings. Unless management achieves structural cost reductions or shifts to higher-margin activities, ongoing losses will erode equity and limit the firm's ability to reinvest and generate sustainable returns.
Weak Cash Flow GenerationNegative operating cash flow and weakening free cash flow growth mean the business is not funding operations or capex internally. This structural cash shortfall increases dependence on external financing, raises liquidity risk, and constrains the firm's ability to pursue projects or absorb shocks over the medium term.
Negative Return On EquityA negative ROE shows capital is not producing shareholder returns and signals inefficient capital allocation or persistent operating losses. Over time this undermines investor confidence and the firm's capacity to attract growth capital, posing a structural barrier to rebuilding long-term shareholder value.