Negative Operating And Free Cash FlowPersistent negative operating and free cash flow despite accounting profits signals weak cash conversion and working-capital strain in the credit model. Over months this raises refinancing, liquidity and execution risks, and can force dependence on external funding or slower growth.
Volatile ProfitabilitySignificant swings between losses and profits show uneven earnings quality and make forecasting difficult. For a lender, this implies sensitivity to credit cycles and underwriting execution; persistent volatility can hinder strategic planning and investor confidence over the medium term.
Low Shareholder Returns (low ROE)Low-single-digit ROE indicates the company is not generating strong returns on capital, limiting its ability to self-fund growth or reward investors. Over 2–6 months this constrains capital allocation flexibility and could pressure management to alter strategy or seek dilutive funding.