Persistent UnprofitabilityConsistent negative net and EBIT margins reflect structural unprofitability. Ongoing losses erode shareholder equity and depress ROE, limiting retained earnings and operational reinvestment capacity, thereby requiring external funding unless margins are materially improved.
Negative Operating Cash FlowNegative operating cash flow indicates core operations consume cash rather than generate it. This weakens the company's ability to fund working capital and capex internally, increases reliance on external financing, and elevates liquidity and refinancing risk over the medium term.
High LeverageA debt-to-equity ratio above 1.0 signals meaningful leverage that increases interest obligations and reduces financial flexibility. High leverage constrains ability to invest in growth, raises default risk in downturns, and can force priority on deleveraging over strategic initiatives.