Severely Weakened Net ProfitabilityNet margin near zero and very low ROE signal the business struggles to convert sales into shareholder returns. Over months this limits capacity to self-fund growth, weakens investor appeal, and makes the firm more vulnerable to cost inflation or margin pressure.
Persistent Revenue DeclineMulti-year revenue decline erodes scale advantages and weakens competitive position. If the top line contracts structurally, fixed-cost absorption worsens, reducing operational leverage and making margin recovery and profitable expansion materially harder over the medium term.
Weak Cash Conversion And Falling Operating Cash FlowDeclining operating cash flow and a low FCF-to-net-income ratio indicate difficulty turning earnings into spendable cash. This constrains capex, marketing or dividend flexibility and raises refinancing or liquidity risk if revenue or margins falter over the coming months.