Sharp Revenue ContractionA steep reported revenue decline signals material demand loss, business divestiture, or execution issues that compress scale economics. Sustained top-line weakness undermines margin sustainability and limits internal funding capacity until growth is restored.
Historical Cash-flow VolatilityPast negative operating cash flows highlight underlying volatility in cash generation. Even with recent improvement, inconsistent cash flow raises execution and planning risk, making durable investment and dividend policies harder to maintain if conditions revert.
Rising Absolute Debt LevelsAlthough current leverage ratios are moderate, a trend of increasing total debt raises refinancing and interest rate exposure. If earnings or cash flow weaken, higher absolute debt could constrain strategic flexibility and pressure credit metrics.