High LeverageHigh leverage can increase financial risk, especially in volatile markets, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.
Negative Cash FlowsNegative cash flows indicate potential liquidity issues, limiting the company's ability to reinvest in the business, pay down debt, or return capital to shareholders.
Low Equity RatioA low equity ratio suggests reliance on debt financing, which can be risky if interest rates rise or if the company faces financial challenges, affecting long-term stability.