Margin Compression Since 2022A near 12-point drop in net margin over a three-year span signals rising cost pressures or increased spending intensity that erode earnings power. If structural, weaker margins limit retained earnings, constrain reinvestment and raise sensitivity to slower sales growth.
Weakened Free Cash Flow / Cash Conversion PressureDeclining FCF and lower operating cash versus prior years reduce financial flexibility to fund growth or return capital. Persistent cash conversion deterioration can indicate working capital strain or higher capex and raises risk that reported earnings are less cash-backed.
Decline In Shareholders' EquityA sizable reduction in equity over two years weakens the capital cushion and may reflect payouts, write-downs or accumulated deficits. Lower equity constrains balance-sheet capacity for larger investments or absorbing shocks, increasing dependence on operational cash flow.