Declining Revenue & MarginsSustained revenue decline and falling gross margins indicate weakening core demand or pricing power. Over several quarters this undermines scale economics, limits reinvestment capacity, and pressures margins, making structural recovery harder without meaningful business-model or market-position improvements.
Negative Cash GenerationPersistent negative operating and free cash flows show the business fails to convert operations into liquidity. This erodes runway, forces reliance on external financing, and constrains capital expenditures and debt servicing, creating ongoing pressure on operational resilience and strategic options.
Weak Equity Base & ReturnsA weak equity ratio and negative ROE reflect a fragile balance sheet and recurring losses. Structurally this limits the company's ability to absorb shocks, pursue growth projects, or access favorable financing, and raises the risk that capital supports will be needed to restore solvency over the medium term.