High LeverageA debt/equity ratio of 1.74 indicates substantial reliance on external debt financing. This elevates interest and refinancing risk, limits financial flexibility for capex or working capital, and increases vulnerability to margin or cash‑flow setbacks over a 2–6 month horizon if markets or costs shift unexpectedly.
Negative Cash FlowNegative operating and free cash flows show the business currently consumes cash to fund operations and growth. This reduces the ability to self‑finance, raises dependency on external funding, and heightens liquidity risk—constraints that can materially impair operational flexibility in the medium term.
Profitability PressureOngoing negative net profit and EBIT margins, plus a falling gross margin, indicate structural cost or pricing challenges. Continued losses erode equity, limit reinvestment capability and require sustained corrective actions (cost, pricing, or mix changes) to restore durable profitability over coming months.