Rising LeverageAn increasing total debt and higher debt-to-equity ratio raise fixed obligations and reduce financial flexibility. If operating performance weakens, elevated leverage amplifies downside risk, can constrain capital allocation, and may force trade-offs between investment, servicing debt, and liquidity preservation.
Negative Free Cash FlowPersistent negative free cash flow and volatile operating cash flows limit internal funding for capex, tooling upgrades and debt reduction. Reliance on external financing raises refinancing and liquidity risk, potentially restricting the firm's ability to invest in long-term automation opportunities or R&D.
Deteriorating ProfitabilityDeclining revenues and compressing gross, EBIT and net margins indicate margin pressure and operational inefficiencies. Combined with sharp EPS deterioration, this undermines sustainable cash generation and competitiveness, necessitating structural cost or mix improvements to restore durable profitability.