Weak Cash GenerationPersistent negative operating cash flow and poor free-cash-flow conversion hinder the firm's ability to self-fund capex, dividends, or strategic investments. Over the medium term this increases reliance on external financing, elevating liquidity and refinancing risks during adverse market conditions.
Declining Revenue TrendA material revenue decline and inconsistent growth trend signal potential market share loss or demand weakness. Over several quarters this undermines predictability of cash flow and profitability, complicates capacity planning, and may pressure margins if fixed costs remain elevated.
Operating Margin VolatilityVolatile operating margins reduce earnings visibility and amplify earnings-risk from cyclical demand or input-cost swings. Even with recent net margin recovery, inconsistent EBIT/EBITDA margins complicate long-term planning, making sustained margin improvement and forecasting more challenging.