High LeverageElevated debt relative to equity materially reduces financial flexibility and raises refinancing and covenant risks. With diminished equity, the company is more vulnerable to shocks and has less capacity to absorb losses, which jeopardizes strategic options over the medium term.
Weak Cash GenerationNegative operating cash flow and zero free cash flow indicate the business cannot self-fund operations or investments. Persistent cash deficits undermine debt servicing, capex, and working capital needs, increasing reliance on external financing and raising solvency risk.
Profitability DeteriorationDeclining revenues and deteriorating gross and operating margins show structural profitability issues. Continued negative EBIT/EBITDA and net losses will erode shareholders' equity, constrain reinvestment, and make recovery dependent on sustained margin improvement or cost restructuring.