Declining Revenue TrendSustained revenue contraction reduces scale needed to cover fixed costs, weakens supplier/customer leverage, and signals loss of market traction. Over several months, persistent top-line shrinkage impairs investment capacity and limits ability to benefit from structural demand tailwinds.
Consistent Losses And Negative MarginsOngoing losses and negative margins indicate structural unprofitability and operational inefficiencies. Over a 2-6 month horizon this erodes reserves, restricts reinvestment in R&D and capacity, and hinders the company’s ability to scale into higher‑value aerospace and automotive contracts.
High Leverage And Shrinking EquityElevated leverage and declining equity reduce financial flexibility and raise refinancing risk. In a capital‑intensive materials business this limits the ability to fund capex or weather raw‑material cycles, making operational recovery and strategic investments more difficult over the medium term.