Negative Operating And Free Cash FlowSustained negative operating and free cash flow indicates the business currently consumes cash to run operations and grow. Over months this erodes liquidity, forces external financing or cost cuts, and limits ability to invest in product launches or distribution expansion without diluting shareholders.
Persistent UnprofitabilityNegative EBIT and net margins show the company is not yet converting revenue into operating profit. Persisting losses reduce retained earnings and hinder reinvestment capacity. Without margin improvement the company faces structural profitability risk over the medium term.
Negative Return On EquityA negative ROE signals shareholder capital is producing losses rather than returns, undermining long-term capital efficiency. That persistent negative ROE can constrain access to equity funding, raise cost of capital, and limit the firm's ability to finance growth initiatives.