Profit Margin DeclineA slight decline in net profit margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability.
Leverage OptimizationWhile low leverage is a strength, underutilization of debt could limit growth opportunities and return on equity, affecting competitive positioning.
Seasonal Revenue FluctuationsSeasonal revenue fluctuations can lead to inconsistent earnings, challenging cash flow management and long-term financial planning.