Negative Operating Cash FlowPersistent negative operating cash flow shows the business struggles to generate cash from its core operations. Over several months this forces reliance on external funding, increases liquidity risk during project cycles, and limits reinvestment capacity without raising debt or equity.
Rising LeverageAn increasing debt-to-equity ratio signals growing reliance on borrowed funds. For a developer, higher leverage raises interest and refinancing risks, tightens covenant exposure and reduces financial flexibility, making the company more vulnerable if capital markets or project returns deteriorate.
Negative Margins And Declining RevenueOngoing revenue volatility and negative operating margins indicate structural issues in pricing, project execution, or cost control. Over the medium term this constrains ability to achieve sustainable profitability and shareholder returns, and hinders accumulation of reserves to fund growth or weather downturns.