Weak Cash GenerationNegative free cash flow and a recent zero operating cash flow period show poor cash conversion of earnings. This structural cash weakness constrains funding for growth, increases reliance on external financing, and elevates liquidity risk over the medium term.
Volatile Net ProfitabilitySignificant swings in net margins point to earnings sensitivity to cost swings, pricing pressures, or one-offs. Persistent volatility undermines predictability of earnings, complicates capital allocation, and raises the risk profile for sustaining returns to shareholders.
Elevated Total Liabilities RiskEven with reasonable debt-to-equity, elevated total liabilities increase solvency and covenant exposure if cash flows remain weak. Over 2–6 months, this could pressure liquidity, raise borrowing costs, or force deleveraging actions that hamper strategic flexibility.