Inconsistent Operating Cash FlowVolatile operating cash flow limits the company’s ability to reliably fund capex, dividends, or debt repayment from internal resources. Over months this weakens financial flexibility and increases reliance on external financing, which can raise costs and constrain strategic initiatives.
Rising LeverageAn uptick in leverage, even if modest, reduces the company’s financial cushion and elevates interest and refinancing risk. Persisting higher leverage can limit strategic optionality, raise funding costs, and magnify downturn impacts across the coming quarters.
Net Profit Margin VolatilityFluctuating net margins indicate inconsistent conversion of revenue into earnings, reflecting potential cost, pricing, or mix pressures. Margin instability undermines earnings predictability and complicates long-term planning for investments, dividends, and debt servicing.