Negative Equity / Solvency RiskNegative shareholders' equity is a structural red flag: it limits borrowing capacity, restricts strategic options, and increases insolvency risk. Over the medium term, this weak capital base can constrain growth, force dilutive recapitalizations, or require creditor concessions.
Declining Revenue TrendA sustained revenue decline signals challenges in market penetration, pricing, or product demand. Without a reversal, lower top-line momentum limits operating leverage and scale benefits, making it harder to absorb fixed costs and achieve consistent profitability.
Negative Operating Cash Flow And LossesPersistent negative operating cash flow and recurring net losses erode liquidity and require external funding or asset sales. Structurally, this undermines the firm's ability to self-fund R&D, support sales expansion, and sustain operations without repeated financing events.