Negative Operating And Free Cash FlowPersistent negative operating and free cash flows undermine the firm's ability to self-fund investments or service obligations. Over a multi-month horizon, continued cash-flow deficits could force asset sales, higher borrowing or dilution, reducing strategic flexibility and raising liquidity risk.
Low Net Profit MarginA net margin of ~1.5% limits earnings retention and the buffer against shocks. Even with stable EBIT/EBITDA margins, such a low bottom-line conversion reduces capacity to build reserves, invest organically, or absorb rising interest and non-operating costs over the medium term.
Rising Total Debt ConcernsAlthough current leverage is moderate, the noted increase in total debt could pressure interest coverage and flexibility if cash flows don't recover. A trend of rising borrowings on negative FCF increases refinancing and covenant risks over the next several quarters.