Pressured MarginsSustained declines in EBIT/EBITDA and net margins erode internal funding capacity and reduce returns on new investments. Margin pressure can limit ability to reinvest, force higher leverage to fund growth, and weaken resilience to cost inflation over the next several quarters.
Declining Return On EquityA falling ROE signals the company is generating lower returns from shareholder capital, implying weaker capital allocation or worsening operating profitability. If persistent, declining ROE reduces long‑term shareholder value and makes financing future growth less attractive.
Inconsistent Free Cash FlowSignificant FCF volatility indicates uneven ability to convert profits into usable cash after investment. This raises execution and capex‑management risk, potentially constraining dividends, buybacks or opportunistic M&A and increasing reliance on external funding during weak periods.