High LeverageRelatively high leverage creates persistent interest-rate and refinancing sensitivity. Overcoming this requires sustained cash generation or capital raises; high debt can constrain strategic flexibility, elevate financing costs, and increase default risk if macro rates or cashflows deteriorate.
Negative / Volatile Free Cash FlowHeavy, recurring capex producing volatile or negative free cash flow reduces internal funding for growth, dividends, and deleveraging. Persistently weak FCF forces reliance on external financing or equity issuance, which can dilute returns and strain long-term financial flexibility.
Free Cash Flow To Net Income ConcernA weak free cash flow to net income ratio signals earnings aren’t translating reliably into liquidity after investment needs. Structurally this limits capacity to service debt, fund maintenance capex, or return capital, increasing vulnerability during slower demand or higher fuel cost periods.