Weak ProfitabilityPersistent negative margins indicate the company struggles to translate growing sales into profits, suggesting structural cost or pricing issues. Without durable margin improvement, long-term reinvestment, debt servicing and shareholder returns remain constrained.
Deteriorating Cash GenerationA sharp decline in free cash flow and negative operating cash conversion reduce internal funding for capex and working capital. Over months this forces greater dependence on external financing, raising cost of capital and limiting capacity to scale operations or absorb shocks.
Negative Return On EquityNegative ROE shows the firm is not generating returns on shareholder capital, signaling inefficient capital allocation or unprofitable operations. If sustained, it undermines investor support, hampers bulk capital raises and constrains strategic investments over the medium term.