Negative Free Cash FlowPersistent negative free cash flow driven by heavy capital expenditures constrains internal funding for operations and shareholder returns. Unless capex quickly converts to incremental, cash-generative assets, the company may need external financing, raising long-term funding risk.
Suboptimal Asset UtilizationNoted scope to improve asset utilization suggests assets are not yet translating efficiently into sales. Prolonged low asset turns can cap return on assets and equity, requiring management action to improve throughput or divest underperforming assets for durable margin expansion.
Cash Conversion WeaknessOperating cash has improved but relative weakness versus net income implies conversion issues, reducing free cash available for debt repayment or reinvestment. Over months this can pressure working capital, limit strategic optionality and raise dependence on external liquidity sources.