Weak Cash ConversionRecent poor cash conversion and two consecutive years of negative free cash flow reduce internal funding for growth, dividends, and capex. Persistent FCF weakness would force reliance on external financing or asset sales, weakening long-term strategic flexibility.
Rising Leverage TrendAn upward trend in leverage, even from low levels, reduces balance-sheet cushion and increases sensitivity to cash-flow volatility. If cash conversion remains weak, the rising leverage trajectory could constrain investment and elevate financing risk over the medium term.
Slowing Revenue GrowthA meaningful deceleration in top-line growth suggests weaker market expansion or pricing headwinds. Prolonged slow revenue growth can limit operating leverage benefits, cap long-term earnings improvement, and make margin gains harder to translate into sustained profit growth.