High LeverageA debt-to-equity of 3.17 signals significant leverage that raises interest and refinancing risk. Structurally higher leverage reduces financial flexibility, increases vulnerability to rate rises or revenue shocks, and can constrain long-term capital allocation choices.
Negative Free Cash FlowMaterial negative free cash flow indicates the company is not converting profits into usable cash. Persisting FCF deficits force reliance on external financing or asset sales, which is a structural risk to funding operations, dividends, or deleveraging over the medium term.
Weak Cash ConversionA negative operating cash flow to net income ratio points to poor earnings quality and working capital strain. If profits fail to generate cash consistently, liquidity and the ability to service debt or fund growth are compromised over multiple quarters.