High LeverageElevated debt-to-equity increases structural financial risk by raising fixed interest obligations and sensitivity to funding shocks. Over coming months this can constrain balance-sheet flexibility, increase refinancing risk if market conditions tighten, and limit ability to absorb credit deterioration.
Negative Operating Cash FlowPersistent negative operating and free cash flow implies reliance on external financing to fund lending and investments. Structurally, this heightens liquidity risk and cost-of-capital exposure, making the business vulnerable if access to financing tightens or funding costs rise over the medium term.
Declining EBITA declining EBIT margin suggests rising operating costs or margin pressure from competition. If this trend persists, it will erode the conversion of revenue into sustainable earnings, reducing internal cash generation and the firm's ability to invest or strengthen reserves over the next several quarters.