ProfitabilityOngoing negative EBIT and net losses indicate the business has yet to achieve operating leverage over costs. Persistent unprofitability constrains reinvestment, increases reliance on external capital, and raises execution risk until scale or cost structure improvements translate to sustainable profits.
Cash Flow / Cash BurnConsistent negative operating and free cash flows signal structural cash burn from operations. This forces dependence on financing for working capital and growth, limits strategic flexibility, and increases refinancing or dilution risk if cash generation does not improve within the medium term.
Leverage / Balance Sheet RiskDebt exceeding equity and a falling equity ratio indicate elevated financial leverage. Higher leverage amplifies interest and liquidity risk, reduces resilience to revenue shocks, and can constrain investment or M&A options unless deleveraging or stronger cash generation occurs.