Low Net Profit MarginA low net profit margin indicates potential inefficiencies in cost management or pricing strategy, which could hinder profitability and long-term growth.
Limited ProfitabilityLow return on equity reflects challenges in generating sufficient returns from investments, potentially impacting investor confidence and future capital raising.
Cash Flow To Net Income RatioA lower conversion of net income to free cash flow may limit the company's ability to reinvest in growth opportunities and meet financial commitments.