Weak Cash Flow ConversionInability to convert earnings into cash flow suggests potential liquidity issues and may limit the company's ability to reinvest in growth opportunities, impacting long-term viability.
Increased LeverageHigher leverage increases financial risk and interest obligations, which could strain resources and hinder the company's ability to weather economic downturns or invest in growth.
Thin Profit MarginsThin margins indicate limited pricing power and cost control, which could constrain profitability and competitiveness, affecting long-term financial health and market positioning.