Negative ProfitabilityPersistent negative net profit and EBIT margins signal fundamental operating challenges. Over months this undermines internal funding capacity, limits the ability to build reserves, and forces reliance on external financing or asset sales to sustain operations and growth.
Balance Sheet InstabilityNegative shareholders' equity and elevated leverage indicate solvency risk and reduced financial flexibility. Structurally, this constrains the firm's ability to raise capital, increases refinancing risk, and may limit strategic initiatives or prompt covenant pressures over a multi-month horizon.
Weak Cash GenerationDeclining free cash flow growth and poor OCF-to-net income conversion point to weak cash conversion from core operations. This reduces capacity to service debt, fund capex or invest in growth initiatives, posing a durable headwind unless operational cash generation improves.