Large Negative Net And EBIT MarginsDeep operating and net losses reflect structural unprofitability and persistent operational inefficiencies. Absent rapid margin improvement or sustained higher revenue, these losses will continue to deplete equity and require external financing, limiting long-term capital allocation flexibility.
Negative Free Cash Flow And Cash ConversionContinuing negative FCF and poor cash conversion mean earnings do not generate sufficient internal funds. Even with improvement, reliance on financing persists, raising dilution or refinancing risk and constraining the company's ability to fund growth or shore up operations without external capital.
Slight Decline In Equity RatioA falling equity ratio signals that liabilities are growing faster than assets, reducing the balance sheet cushion. Over months this trend can heighten vulnerability to shocks and increase dependence on external financing, weakening long-term financial resilience.