Declining Profitability And MarginsMaterial earnings and margin deterioration over recent years signals rising costs, pricing pressure, or mix shifts that erode long-run profitability. Persistent margin compression can limit reinvestment, reduce returns on capital, and make growth less value-accretive without structural cost fixes.
Absolute Debt Remains SizableDespite improving ratios, large absolute debt balances keep financial flexibility constrained and raise refinancing and interest-rate exposure. Elevated nominal leverage can pressure cash flow during downturns and limit ability to fund M&A or sizable strategic investments.
Earnings And Cashflow VolatilityNotable year-to-year swings in free cash flow and material EPS contraction indicate earnings are not fully stable, which complicates forecasting and long-term planning. Volatility undermines the reliability of cash returns and heightens execution risk for margin recovery initiatives.