Severe Revenue CollapseA near-total revenue collapse erodes the company's core scale and market position. Loss of sales volume destroys margin leverage, undermines customer relationships and supply-chain economics, and makes medium-term recovery difficult without new markets, products, or capital to rebuild revenue streams.
High LeverageA debt-to-equity ratio above 3 indicates substantial leverage that raises refinancing, interest-service and covenant risks. With negative operating cash flow, high debt constrains strategic options, increases default probability, and makes multi-month recovery or investment reliant on external financing or asset sales.
Deep Negative Margins And Cash BurnPersistently negative gross, EBIT and net margins alongside negative operating cash flow show the company is burning cash and not covering operating costs. This weak profitability profile hinders reinvestment, increases reliance on external capital, and threatens solvency without durable margin improvement.