Negative Free Cash FlowPersistent negative free cash flow points to cash-generation deficits despite accounting profits. Over months, this can constrain reinvestment, limit debt reduction or shareholder returns, and force reliance on external financing, which raises long-term execution and liquidity risk.
Weak Cash ConversionA low OCF-to-net-income ratio suggests earnings are not well converted into cash, implying working capital or non-cash adjustments drive profits. That reduces the durability of reported margins and can amplify financial strain if revenue or margin drivers reverse, impairing sustainable cash flows.
Historical Financial VolatilityPrior high leverage and recent period losses show the business has experienced structural stress. Such volatility indicates sensitivity to cycles or execution risk; recurrence would limit strategic options and could erode the benefits of current improvements if market conditions or margins deteriorate.