Negative ProfitabilityExtremely negative operating and net margins point to fundamental cost or pricing failures in the core business. Persistently deep losses will erode cash and require structural changes—cost cuts, price improvements, or higher volumes—to restore sustainable profitability over multiple quarters.
Negative Operating Cash FlowOperating cash outflows mean the company consumes cash from operations, forcing dependence on financing or asset sales. Even with FCF improvement, negative operating cash flow is a durable concern that can compel dilution, higher borrowing costs, or constrained investment if not reversed.
Deeply Negative ROEA severely negative ROE indicates shareholder capital is being destroyed rather than compounded. Over months this undermines investor confidence and limits the company's ability to raise equity on favorable terms, risking dilution or more expensive financing to sustain operations.