High LeverageVery high leverage materially limits financial flexibility and raises refinancing risk in cyclical downturns. For a developer, this heightens vulnerability to interest rate moves and pre-sale slowdowns, constraining land acquisition capacity and increasing default risk on stretched cash flows.
Weak Net ProfitabilityA sub-2% net margin implies limited profit retention from revenues, reducing capacity to self-fund projects, rebuild equity, or absorb shocks. Persistently thin net profitability undermines long-term return on invested capital and increases dependency on external financing.
Cash Flow UncertaintyAbsence of recent operating cash flow and free cash flow data creates uncertainty about actual cash generation and liquidity. For a capital-intensive developer, opaque current cash flows elevate refinancing and completion risks, and weaken confidence in debt servicing capacity.