Weak Cash ConversionLow cash conversion undermines earnings quality:Profitability on paper may not translate to cash for capex, debt servicing, or dividends. Persistent shortfalls constrain reinvestment and raise reliance on working-capital management, increasing long-term operational and financing risk.
Volatile Free Cash FlowSteep decline in free cash flow and large year-to-year swings signal instability in cash generation. Such volatility complicates planning, can force opportunistic asset sales or external financing, and reduces predictability of dividends and capital investments over the medium term.
Unusually Large 2024 Margin JumpAn outsized, atypical margin surge raises sustainability concerns: if driven by temporary favorable conditions, margins may revert, inflating reported profitability. This increases forecasting risk and suggests earnings could be more cyclical than the balance sheet or recent results imply.