Volatile Cash GenerationMaterial swings from strong cash in 2023 to negative operating and free cash flow in 2024 signal volatility in cash generation. This undermines reliable internal funding for growth, complicates multi-year planning, and raises the probability of needing external financing in stress periods.
Margin Durability RiskA downward trend from prior peak margins suggests structural pressures—competitive pricing, cost inflation, or adverse mix—that could reduce long-term profitability. If these trends persist, reinvestment capacity and return targets could be harder to sustain.
Weak Cash ConversionOperating cash flow at roughly 43% of reported earnings indicates weak income-to-cash conversion driven by working capital or non-cash items. Persistent low conversion constrains organic funding, increases reliance on balance-sheet liquidity, and reduces resilience to shocks.