Negative Operating And Free Cash FlowPersistent negative operating and free cash flows indicate projects are not converting reported revenue into cash, forcing dependency on external financing. Over months this constrains liquidity, raises funding costs, and can delay completions or collections, pressuring operational continuity.
High Financial LeverageElevated debt-to-equity increases fixed servicing obligations and refinancing vulnerability. In a cyclical development business, high leverage amplifies earnings volatility, limits capacity to originate new projects without external funds, and raises the risk of covenant or liquidity stress.
Declining Profitability MetricsDeclining revenue, net income and net profit margin signal margin pressure and reduced return on capital. This trend erodes retained earnings used to fund growth, lowers ROE, and constrains the company's ability to self-fund projects or absorb cost shocks over the medium term.