Persistent Negative Cash FlowOngoing negative operating and free cash flow indicate sustained cash burn that will likely require external funding. Over months, this raises refinancing or dilution risk, can delay development milestones, and forces management to prioritise financing over execution, weakening financial resilience.
Deepening Operating LossesSubstantial negative EBIT/EBITDA and a very wide negative net margin show the business is not operationally profitable. Persisting losses reduce the firm's ability to self-fund capex, undermine investor confidence, and necessitate recurring capital injections that can impede long-term project delivery.
Negative Returns On EquityWorsening negative ROE signals capital erosion: equity is being consumed rather than deployed to generate returns. Over a 2–6 month timeframe, persistent negative ROE increases the probability of equity dilution, impaired investor economics, and pressure to restructure financing or operations to stop value attrition.