Negative Shareholder EquityNegative equity signals potential insolvency and materially weak solvency metrics. Over months this undermines creditor confidence, restricts access to bank financing, and limits strategic flexibility, forcing reliance on emergency recapitalization or asset sales to stabilize the business.
Poor Cash GenerationPersistent negative operating cash flow and shrinking free cash flow indicate the company cannot convert operations into cash. This structural cash deficit pressures liquidity, increases refinancing risk, and impairs the firm’s ability to invest, bid on contracts, or sustain operations without external funding.
Declining Revenue & Negative MarginsSharp revenue decline (recent year -25.8%) and sustained negative margins reflect structural competitiveness and pricing issues. Over a multi-month horizon this weakens customer positioning, limits scale benefits, and makes profitable recovery harder without meaningful business model changes or margin improvement.