Declining Revenue TrendPersistent revenue decline erodes scale economics and limits the company's ability to cover fixed costs, invest in projects, or capitalize on its margin strengths. Without a clear revenue recovery, long-term returns and project paybacks become harder to achieve.
Consistently Negative Operating And Free Cash FlowOngoing negative operating and free cash flow create structural funding needs, forcing reliance on equity issuance, asset sales, or external financing. This reduces strategic optionality and can delay or constrain capital deployment into core projects.
Negative Profitability And Shrinking EquitySustained losses and falling shareholder equity erode the firm's buffer against shocks and limit internal funding for development. Even with low leverage, shrinking equity weakens the balance sheet and may hamper long-term capacity to finance growth organically.