Very Low Net ProfitabilitySub-1% net margin means limited internal earnings retention and low buffer against cost shocks. Persistent low profitability constrains reinvestment in marketing, logistics or technology and raises sensitivity to input cost increases or competitive pricing pressure over the medium term.
Weak Cash Flow ConversionDeclining operating cash flow and negative FCF growth signal poor conversion of reported earnings into liquidity. This limits ability to fund capex, platform upgrades, or buffer seasonal inventory needs, increasing reliance on external financing and pressuring long-term operational resilience.
Inconsistent Revenue And SeasonalityUneven revenue growth and strong seasonality for winter/summer tires create lumpy cash flows and inventory management challenges. Structural reliance on seasonal replacement cycles heightens working capital swings and makes smoothing growth and margins more difficult over multi-quarter horizons.