High LeverageDebt-to-equity of 4.39 signals very high financial leverage that constrains strategic flexibility. Elevated leverage raises interest and refinancing risk, limits capacity to absorb shocks, and can force prioritization of debt service over growth or margin restoration absent sustained cash-flow improvement.
Persistent Negative MarginsChronic unprofitability means the company struggles to convert sales into sustainable earnings. Even with large revenue gains, negative operating profitability undermines return on capital and requires structural cost, pricing or mix improvements to achieve durable cash generation and shareholder value creation.
Ongoing Cash-flow PressureHistorical negative operating and free cash flows have produced liquidity strain. Combined with high leverage, this creates meaningful refinancing and working-capital risk. Without consistent positive operating cash flow, the company may need external funding or asset adjustments, weakening fundamentals.