Declining RevenuesSustained top-line decline reduces scale advantages and undermines fixed-cost absorption, making margin recovery harder. Continued revenue contraction constrains reinvestment, weakens negotiating leverage with suppliers, and raises execution risk for any turnaround over the medium term.
Negative Operating And Free Cash FlowPersistent negative operating and free cash flows erode liquidity and force reliance on external financing or asset sales. This structural cash generation shortfall limits ability to invest in growth or weather further downturns, creating ongoing solvency and capital allocation challenges.
Sustained Operating Losses (negative ROE)A deeply negative ROE reflects that the company is destroying shareholder capital rather than generating returns. Persistent operating losses impair retained earnings, reduce reinvestment capacity, and signal that business economics require material change to restore long-term value creation.