Persistent Net LossesOngoing net losses erode retained earnings and limit internal reinvestment capacity, forcing reliance on external financing or equity. Persisting losses also weaken stakeholder confidence, constrain hiring and product investment, and make it harder to achieve sustainable scale in the asset management business.
Severe Revenue DeclineA steep revenue drop is a structural warning sign that demand, client flows, or product competitiveness have deteriorated. Reduced top-line scale impairs operating leverage, increases unit costs, and complicates any path to margin recovery, making durable profitability and cash generation harder to achieve.
Erratic And Weak Cash FlowsInconsistent operating cash flow and a recent drop to zero constrain the firm's ability to fund day-to-day operations, pay suppliers, or invest in business improvement. Even with low debt, weak cash conversion increases liquidity risk and reduces capacity to absorb future shocks or invest in growth.