Negative ProfitabilitySustained negative operating and net margins indicate the core manufacturing business is loss-making. Persistent unprofitability erodes reserves, limits reinvestment capacity, and undermines ability to fund working capital internally, stressing long-term viability.
High Leverage And Negative EquityNegative shareholders' equity and elevated total debt signal high financial risk and constrained balance sheet flexibility. This increases refinancing and interest-rate vulnerability, limits access to credit, and raises probability of covenant pressure over the medium term.
Weak Cash GenerationConsistently negative operating and free cash flow shows inability to convert sales into internal funding. This forces reliance on external financing for capex, debt service, or working capital, elevating liquidity risk and reducing strategic options over several months.