Rising LeverageA marked increase in leverage reduces financial flexibility and raises refinancing and interest risks. If growth or cash generation weakens, higher debt amplifies downside, constrains strategic investments, and could force more conservative capital allocation over the medium term.
Volatile Cash GenerationIntermittent negative operating cash flow and weaker cash conversion versus net income signal working-capital or timing issues. Volatile cash undermines ability to self-fund growth, may necessitate external financing, and reduces predictability of investment and dividends.
Recent Growth DecelerationA clear slowdown from prior expansion to very modest reported annual growth signals potential market saturation or tougher comps. Persistent deceleration would limit operating leverage, slow margin expansion opportunities, and reduce upside from scale in coming quarters.