Declining Profit MarginsDeclining profit margins indicate challenges in cost management, which can erode profitability and affect the company's ability to reinvest in its business and sustain competitive advantages.
Inconsistent Cash FlowInconsistent cash flow can hinder the company's ability to fund operations and growth initiatives, potentially leading to increased reliance on external financing and affecting long-term financial health.
Declining Stockholders' EquityA decline in stockholders' equity could indicate financial strain or poor earnings retention, potentially affecting investor confidence and the company's ability to raise capital in the future.