Declining Revenues And Negative MarginsSustained revenue decline combined with negative gross and operating margins signals structural operational inefficiencies or weakening sales mix. This erodes retained earnings, limits reinvestment capacity and risks requiring strategic remediation (cost cuts, higher grades, or production changes) to restore profitability.
Severe Free Cash Flow DeteriorationAn almost 90% drop in free cash flow reflects poor conversion of reported income into spendable cash, constraining capex, working capital and debt servicing. Persistent FCF weakness forces reliance on external funding or asset sales and undermines long‑term investment and shareholder returns.
Negative ROE And Rising Leverage TrendNegative ROE indicates the business is destroying shareholder value, while a rising leverage trend reduces financial flexibility. Over time this combination increases refinancing risk, limits strategic options and raises vulnerability to prolonged commodity or operational headwinds.