Large Recurring Net LossesSustained, very large net losses indicate core earnings weakness and persistent operating problems. Continued losses erode retained capital, reduce internal funding capacity for growth or maintenance, and materially weaken long-term shareholder value unless profitability reverses.
Inconsistent And Weakening Cash GenerationA swing to negative operating and free cash flow signals cash burn risk and unreliable cash conversion. Weak cash generation constrains reinvestment in assets, dividend or distribution capacity, and may force equity raises or asset sales to fund operations over the medium term.
Severe Equity Erosion And Deeply Negative ROEA sharp decline in equity and extreme negative ROE reflect material value destruction and impaired capital efficiency. This limits strategic flexibility, raises concerns about governance or strategy execution, and makes future capital raises more dilutive or costly for shareholders.