Rising Debt TrendAlthough current leverage is moderate, an upward debt trend reduces financial headroom and raises interest and refinancing exposure. If debt continues to rise while cash conversion weakens, it could constrain strategic investments, increase financing costs, and erode resilience to demand slowdowns over months.
Negative Free Cash FlowPersistent negative free cash flow driven by elevated capex undermines internal funding of growth and working capital. Over a multi-month horizon this can force reliance on external financing, limit dividend or buyback ability, and increase sensitivity to interest-rate or funding-cost rises.
Declining Net IncomeA decline in reported net income despite revenue and margin strength suggests one-off costs, pricing pressure, or rising operating expenses. If persistent, falling net income can limit retained earnings for reinvestment and weaken ROE momentum, affecting long-term profitability trajectory.