Multi-year Revenue DeclineSustained revenue declines erode scale economics and market position. Over a multi-month horizon, shrinking top line makes it harder to cover fixed costs, undercuts bargaining power with suppliers, and constrains reinvestment, making a durable recovery more challenging.
Weak Operating Cash FlowAbsence of operating cash flow and negative free cash flow are structural red flags for liquidity and viability. Without consistent cash generation, the company may rely on external financing, limiting strategic options and increasing vulnerability during prolonged revenue weakness.
Persistent Losses And Declining EquityOngoing net losses combined with declining assets and shareholders' equity reduce the balance-sheet buffer over time. This trend weakens creditor and investor confidence, restricts capital for growth, and increases the risk that structural fixes will be needed to restore solvency.