Negative Free Cash FlowA shift to negative free cash flow is a durable concern: it constrains internal funding for capex, dividends, and debt service, and increases reliance on external financing. Over 2–6 months, persistent negative FCF would pressure liquidity and strategic flexibility.
Low Cash ConversionWeak cash conversion implies earnings quality issues and that reported profits are not translating into usable cash. This reduces the company's ability to self-fund growth or absorb shocks, raising medium-term execution and payout risks.
Rising Debt TrendAlthough leverage is moderate today, a trend of increasing total debt raises refinancing and covenant risk if earnings or cash flow underperform. Over months, rising indebtedness can erode flexibility and increase funding costs if not matched by stronger cash generation.