Negative Cash FlowNegative operating and free cash flow signal a durable cash-conversion problem despite accounting profits. Over months this can force external financing, limit capex and R&D funding, raise refinancing risk, and constrain the firm's ability to sustain growth without margin improvement.
Rising LeverageAn uptick in leverage to a 0.40 debt/equity level reduces balance sheet flexibility. If cash generation remains weak, higher debt raises interest and refinancing pressure, limits strategic optionality, and heightens vulnerability to macro shocks over the medium term.
Declining EPS GrowthA steep EPS decline indicates deteriorating per-share profitability or dilution that can erode investor returns if persistent. Over the medium term, reversing volatile EPS is essential to justify reinvestment, retain investor confidence, and sustain access to low-cost capital.