Rising LeverageHigher leverage raises fixed financing costs and reduces balance sheet flexibility. With debt/equity moving up, the company is more exposed to interest-rate and cash-flow volatility, limiting its ability to invest, weather cyclical downturns, or pursue strategic opportunities over the coming months.
Negative Free Cash FlowA swing to negative free cash flow constrains the company's capacity to service debt, invest in capacity upgrades, or sustain distributions. Even with prior healthy operating cash flow, recurring negative FCF signals potential structural pressure on cash generation from working capital or capex needs.
Declining Profitability And EfficiencyMaterial declines across ROE, net and EBIT margins indicate weakening core profitability and operating efficiency. Sustained margin erosion reduces retained earnings capacity and makes funding growth or deleveraging harder, increasing long-term execution and competitive risks if trends persist.