Severe Free Cash Flow DeclineAn almost complete erosion of free cash flow sharply reduces the company’s capacity to fund capex, acquisitions, dividends, and debt reductions from internally generated cash. If persistent, this undermines financial flexibility and could force reliance on external financing.
Weak Cash Conversion Of Reported EarningsLow conversion of accounting profits into operating cash points to earnings quality issues—accruals, receivables or working capital pressure. Structurally weak cash conversion raises risk for liquidity management and makes sustained investment or payout strategies harder to support.
Revenue Exposure To Reimbursement And Referral DynamicsDependence on government reimbursement and private insurance coverage creates ongoing regulatory and payer risk. Changes to policy, subsidy levels or insurer coverage can materially affect affordability, patient volumes and clinic utilisation, making revenue less predictable over time.