Negative Operating And Free Cash FlowPersistent negative operating and free cash flow undermines the firm's ability to self-fund operations and investments. Over months this forces reliance on external financing, increases interest and refinancing risk, and constrains capex or working capital needed to support growth initiatives.
Ongoing Unprofitable Operations And Negative MarginsSustained negative net profit and EBIT margins indicate the core business is not yet generating economic returns. Without structural margin improvement—via pricing, cost control, or mix shift—losses will erode equity and limit reinvestment, harming medium-term competitiveness.
Negative Return On Equity (weak Capital Efficiency)A negative ROE signals poor capital allocation and weak profitability relative to equity. This reduces the company's ability to attract new capital, hampers strategic investments, and suggests structural challenges in converting assets and sales into sustainable shareholder returns.