Operating Cash Flow ShortfallZero operating cash flow despite reported profits indicates conversion issues from earnings to cash. This weakens the firm's ability to fund capex, service debt, or return capital without external financing, creating persistent liquidity risk.
Thin Absolute ProfitabilityLow absolute margins leave limited buffers against input-cost inflation, pricing pressure, or volume swings. In capital-intensive metal fabrication, thin margins make earnings vulnerable and constrain reinvestment or margin shock absorption over time.
Liquidity Concerns Despite Improved MetricsAlthough leverage fell and equity rose, persistent cash flow weakness creates a mismatch: balance-sheet strength may not prevent short-term funding needs. Ongoing liquidity gaps can force costly financing or curtail growth initiatives.