Strong Balance SheetA high equity ratio and low leverage provide durable financial flexibility: supports capital allocation, cushions downturns, and preserves borrowing capacity for capex or M&A. Steadily rising equity signals long-term balance sheet solidity that underpins resilience over months.
Historic Free Cash Flow GenerationConsistent historical free cash flow supports sustainable operations, dividends, and reinvestment without relying on new financing. Over a 2-6 month horizon, demonstrated cash conversion gives the company room to fund working capital and strategic initiatives even if revenue fluctuates.
Gross Margin ResilienceAn improving gross margin suggests relative pricing power or better product mix, which helps sustain profitability even as top-line growth slows. This structural margin resilience supports medium-term margin sustainability and operational leverage when volumes recover.