Severe Profitability DeteriorationA collapse in net margin to ~1.3% from double digits signals structural margin pressure—either cost inflation, pricing weakness, or higher overhead. Persistently thin margins limit ability to invest, build reserves, or sustain shareholder returns, pressuring strategic options over months.
Weak Cash GenerationA >50% drop in free cash flow and OCF/Net Income of 0.20 show poor conversion of earnings to cash. This heightens liquidity and reinvestment risk, may force external financing for capex or working capital, and reduces resilience to continued revenue or margin pressure.
Eroding Shareholder ReturnsROE collapsing from ~13.6% to ~1.4% reflects steep declines in profitability relative to equity. Lower capital efficiency undermines long‑term investor returns, may constrain capital allocation choices, and increases scrutiny on strategy and management performance.