Declining ProfitabilityMaterial margin compression over several years points to rising input costs, pricing pressure, or operational inefficiencies. Persistently weaker gross and net margins reduce retained earnings, impair the firm's ability to self-fund capex, and weaken returns on invested capital over the medium term.
High LeverageSustained elevated indebtedness constrains financial flexibility and raises refinancing and interest-rate risk. With leverage at material levels, the company is more exposed if cash generation weakens, limiting capacity to pursue strategic investments or absorb regulatory/commodity shocks.
Weak Cash Generation / Liquidity RiskVolatile and recently near-zero free cash flow undermines the firm's ability to fund operations and necessary network capex internally. Chronic weak FCF raises reliance on external financing, increasing liquidity and refinancing risk during downturns or periods of heavy investment.