High Leverage (debt-to-equity)Significant leverage raises long-term financial risk by increasing interest burden and refinancing exposure. Over 2–6 months, high debt constrains strategic investments, reduces shock absorption capacity, and leaves the company vulnerable to adverse rate or demand shifts.
Negative Net Income And Weak MarginsPersistent negative net income and depressed operating margins erode retained earnings and reduce funds for reinvestment. Over time this limits product development, marketing spend and margin recovery, forcing structural cost actions or portfolio changes to restore profitability.
Declining Revenue GrowthNegative top-line growth and a decline from 2023–2024 indicate weakening demand or share loss. Sustained revenue declines reduce scale economies, pressure gross and operating margins, and require strategic repositioning of brands or channels to regain medium-term growth momentum.