Negative Free Cash FlowPersistent negative free cash flow driven by elevated capex weakens the company's ability to self-fund growth and servicing needs. Over months this raises dependence on external financing, constrains discretionary spending, and may limit resilience during demand slowdowns.
Inconsistent ProfitabilityVolatile net profit margins and inconsistent ROE signal unstable bottom-line performance despite revenue growth. This variability undermines predictability of earnings and cash generation, complicating planning and investor confidence across medium-term cycles.
Reliance On FinancingMaterial increases in cash via financing suggest reliance on external capital to shore up liquidity. Over time this can increase interest costs or dilution risk, and indicates operating cash flows alone may be insufficient to cover investment and working capital needs.