Net Loss And Negative Net Profit MarginDespite strong revenue and high EBIT margins, a -15.6% net margin shows non-operational costs, taxes, interest, or one-offs eroding bottom-line profit. Persistent net losses can deplete reserves, limit reinvestment, and undermine the long-term ability to translate operational strength into shareholder returns.
Negative Free Cash Flow Due To High Capital ExpendituresNegative free cash flow driven by heavy capex reduces liquidity and may force reliance on external funding or equity issuance. Over the medium term, sustained negative FCF limits financial flexibility and can constrain dividend policy, deleveraging or strategic investments if capex does not yield proportional returns.
Declining Return On EquityA negative ROE indicates the company is not generating acceptable returns from shareholder capital despite a strong equity base. Persistently weak ROE signals ineffective capital allocation and challenges in converting asset and equity strength into profitable growth over the medium term.