Rising LeverageAn increasing debt-to-equity ratio raises financial leverage and fixed interest obligations, reducing balance sheet flexibility. With leverage growing while profitability is weak, refinancing and solvency risks rise, constraining strategic options and increasing financial vulnerability over time.
Net Loss / Deteriorated ProfitabilityA substantial net loss and sharply weaker net margin erode retained earnings and limit internal funding for growth or debt reduction. Persistent net losses can force restructuring, asset sales, or equity raises, undermining long-term financial health unless profitability is restored.
Declining Free Cash Flow TrendA declining free cash flow trend reduces surplus cash available for debt repayment, dividends, or strategic investments. If continued, the company may need to curb growth spending or access external capital, increasing cost of capital and operational risk over the medium term.