Elevated Financial LeverageHigh leverage increases sensitivity to earnings or cash-flow deterioration and raises refinancing and interest-rate risk. Structurally, elevated debt limits financial flexibility for M&A, capex or buffering downturns and is a meaningful constraint on durable stability.
Multi-year Revenue And Cash-flow VolatilityIrregular top-line and cash performance undermines forecasting, capital allocation and the credibility of margins. Persistent volatility makes it harder to sustain investment programs, manage leverage, and deliver consistent shareholder returns over a multi-month horizon.
Moderate Returns On EquitySubpar ROE indicates less efficient use of shareholder capital versus prior peaks, potentially limiting the firm's ability to organically rebuild equity and reduce leverage. Persistently moderate ROE can constrain long-term shareholder value creation and reinvestment capacity.