Zero Operating Cash Flow And Weak FCFOperating cash flow at zero and no free cash flow growth are structural risks: they limit the firm's ability to self-fund capex, R&D, and working capital for volume ramps. Over months this can force reliance on balance-sheet reserves or external financing, weakening strategic optionality.
Compression In Profitability MarginsDeclining net and EBIT margins indicate persistent margin pressure from cost, pricing or mix shifts. Reduced operating profitability undermines reinvestment capacity, lowers earnings resilience in downturns, and makes it harder to fund product development or margin-restoring initiatives.
Falling Return On EquityA drop in ROE signals declining capital efficiency and weaker returns for shareholders. If not addressed by operational improvement or better capital allocation, persistent ROE deterioration can constrain dividend sustainability and investor confidence over the medium term.