Negative Operating And Free Cash FlowPersistently negative operating and free cash flows signal structural cash-generation weakness. Over a multi-month horizon this forces reliance on external financing, increases liquidity risk, and constrains investment in inventory, marketing, or product improvements needed to restore profitability.
Consistent Operating LossesOngoing negative EBIT and EBITDA margins point to entrenched operational inefficiencies or cost structure mismatches. Without durable margin fixes, the firm will struggle to generate retained earnings, limiting reinvestment and making long-term recovery dependent on transformational cost or revenue initiatives.
Negative Return On EquityA negative ROE means the company is destroying shareholder capital rather than creating it. Structurally, this undermines investor confidence and indicates the business needs either higher margins, better asset utilization, or capital/base restructuring to deliver sustainable returns over the coming months.