Negative Shareholders' EquityPersistent negative equity signals insolvency risk and materially constrains financial flexibility. It limits borrowing capacity, raises creditor scrutiny, and can force dilutive recapitalizations or asset disposals, impairing the company's ability to fund long-term recovery and capex.
Negative Operating And Free Cash FlowAn inability to generate positive operating and free cash flow undermines working capital, interest servicing and reinvestment. Over months, continued negative cash conversion requires external financing or asset sales, increasing solvency pressure and jeopardizing durable operations.
Multi-year Revenue Decline And Negative MarginsLong-term revenue contraction coupled with persistent negative margins erodes competitive standing and reduces scale benefits. Without structural improvements to pricing, cost base or product mix, sustained losses will impede reinvestment and prolong recovery timelines over the medium term.