High LeverageA roughly 4.1x debt-to-equity ratio and declining equity materially reduce financial flexibility. High leverage magnifies interest and refinancing risk, constrains capital allocation, and increases vulnerability to macro shocks or slower collections, creating a persistent headwind to durable recovery.
Recurring Net LossesRepeated annual net losses indicate underlying profitability challenges despite stable revenues. Persistent negative earnings erode equity, limit retained-capital reinvestment, and make it harder to generate returns on invested capital, posing a structural constraint on long-term shareholder value creation.
Moderate Debt Coverage / Refinancing RiskAlthough cash generation is positive, coverage of debt is only moderate and weakened in 2024. With large liabilities and tight coverage, the company faces ongoing refinancing risk and limited buffer for increased rates or portfolio underperformance, a durable constraint on strategy execution.