Declining RevenueSustained revenue decline reduces scale and worsens fixed-cost absorption, pressuring margins and cash generation. Without durable improvements in top-line demand or market share, recovery requires structural changes to products, pricing, or distribution to restore growth.
Deep Negative MarginsExtremely negative EBIT and net margins indicate core operations are loss-making at current cost and pricing levels. Such structural unprofitability erodes equity and requires sustained operational restructuring, cost reduction, or pricing power gains to achieve long-term viability.
Negative Operating Cash FlowNegative operating cash flow means core business activities do not generate sufficient cash, forcing reliance on financing or asset sales. Over several months this undermines liquidity and limits the company's ability to fund working capital, capital expenditures, or a recovery plan.