Persistent Negative ProfitabilityContinued negative net profit and EBIT margins signal the business has yet to reach sustainable profitability. Ongoing losses limit retained earnings, constrain reinvestment capacity, and make funding growth or absorbing shocks harder without a durable improvement in margins or a clear path to break-even.
Rising Leverage And Weaker Equity RatioA materially higher debt-to-equity ratio and lower equity ratio reduce financial flexibility and raise solvency risk. Elevated leverage increases interest burdens, narrows buffer against revenue volatility, and can restrict strategic choices or raise refinancing costs if operating performance does not strengthen.
Negative Free Cash Flow GrowthNegative free cash flow growth implies the company is not converting operating inflows into surplus cash after investments. Over time this limits capacity to fund capex, reduce debt, or invest in technology, making the firm more reliant on external funding while profitability remains weak.