Thin Net MarginsPersistently low net margins limit retained earnings and make earnings more sensitive to cost swings. Over time this constrains the firm's ability to fund growth internally, absorb shocks, or build reserves, increasing reliance on external financing for strategic initiatives.
Elevated LeverageConsistently high debt levels amplify cyclical and interest-rate risk in a transaction-driven business. Elevated leverage reduces financial flexibility for acquisitions or capex, increases refinancing and interest exposure, and heightens vulnerability if property market activity slows.
Weak And Volatile Cash ConversionEarnings that do not reliably convert to cash indicate working-capital swings and lower quality of reported profits. Over months, this undermines ability to fund operations, pay down debt, or sustain investments without external financing, raising operational and liquidity risk.