Significant Total Debt LevelsNoted sizeable total debt raises refinancing and interest-cost risk, reducing strategic flexibility. Over a 2–6 month horizon higher leverage can constrain ability to increase investment, absorb shocks, or pursue acquisitions if cash generation slows or rates rise.
Lower Net Profit MarginAlthough margins are improving, the company’s net profit margin remains relatively low, limiting retained earnings and buffer against cost inflation or pricing pressure. Sustained margin improvement is required to materially boost long-term reinvestment and shareholder returns.
Volatile Investing & Financing Cash FlowsMarked variability in investing and financing flows can make free cash flow less predictable and complicate capital allocation. Over several months this volatility could hinder consistent dividend policy, capex planning, or steady debt reduction if negative swings recur.