Profitability & MarginsSustained declines in gross and net margins indicate structural pressure from pricing, cost inflation, or competitive undercutting. Reduced profitability limits reinvestment capacity, weakens returns on projects, and can erode competitive positioning unless cost base or pricing power is restored over the medium term.
Cash GenerationNegative and volatile operating cash flows and absent free cash flow undermine the firm's ability to self-fund operations, capex, or acquisitions. Over months this raises liquidity risk, increases dependence on external funding, and constrains strategic initiatives and resilience to sector downturns.
Asset Base DeclineA shrinking asset base and falling shareholders' equity suggest contraction or write-downs that reduce operating scale and collateral. Over the medium term this can limit the firm's ability to bid for large projects, secure developer partnerships, and leverage assets for financing, constraining growth options.