High LeverageVery high leverage materially increases financial risk: interest cost sensitivity, reduced covenant flexibility, and amplified earnings volatility. Over months this limits strategic optionality, raises refinancing risk in tighter markets, and makes the business more vulnerable to asset-quality shocks.
Negative Operating And Free Cash FlowsOperating cash outflows that lag accounting profits undermine internal funding for capex, lease origination, and dividends. Persistently negative free cash flow constrains reinvestment and forces reliance on external capital, creating a durable headwind to organic growth and balance-sheet repair.
Dependence On Financing For LiquidityMaterial reliance on financing inflows for liquidity is a structural vulnerability. If external funding costs rise or market access tightens, the firm could face higher interest burdens and refinancing challenges, compressing margins and limiting strategic investments over the medium term.