Rising LeverageIncreased leverage can strain financial resources and limit the company's ability to invest in growth opportunities, posing a risk to long-term stability.
Modest EBIT And EBITDA MarginsModest margins suggest potential challenges in cost control or competitive pricing pressures, which could impact profitability if not addressed.
Increased Reliance On DebtGreater reliance on debt financing can increase financial risk, especially if interest rates rise or if cash flow generation does not improve.