Negative Operating Cash FlowOperating cash flow turning negative is a structural concern: it weakens liquidity, forces reliance on external financing, and limits the company's ability to fund working capital or capex internally. Over months this raises refinancing and execution risk.
Elevated LeverageHigher leverage raises interest and refinancing burdens and reduces financial flexibility during slower cash generation. With operating cash flow negative, elevated debt amplifies risk of covenant pressure and limits capacity to invest or withstand input-cost volatility.
Weak Net ProfitabilityA very low net margin and negative EBITDA indicate thin earnings and limited buffer for cost shocks. Persistently weak profitability constrains retained earnings, undermines ability to deleverage, and forces dependence on external capital to sustain growth.