No Operating Cash FlowLack of operating cash generation and zero FCF are structural red flags: recurring operational deficits force reliance on financing or asset sales. Over months this can limit reinvestment, increase dilution or leverage, and constrain the company's ability to fund sustained development or commercialization.
Declining Profitability MetricsA sharp fall in net margin and negative EBIT/EBITDA point to worsening operating efficiency or higher overheads. If persistent, this erodes the conversion of strong gross margins into shareholder returns, weakens reinvestment capacity, and heightens long-term profitability risk.
Inconsistent Revenue And Declining AssetsVolatile top-line and shrinking asset base reduce visibility and scale economics. Over the medium term, inconsistent revenues hinder planning for development programs and weaken asset utilization, limiting the firm's ability to build durable market position or fund ongoing projects internally.