Sharp Revenue DeclineA near-55% revenue decline is a material structural headwind for scale, margin absorption and market positioning. Sustained top-line contraction limits reinvestment, increases per-unit costs and raises reliance on margin recovery or new product launches to restore durable growth.
Volatile Profitability And MarginsInconsistent gross and net margins indicate operational volatility or shifting product mix. Erratic profitability makes forecasting and long-term planning difficult, weakens pricing power and suggests the company may struggle to sustainably convert revenue into stable earnings.
Decreasing Equity Ratio / Rising LiabilitiesA declining equity ratio signals rising liabilities versus assets, reducing financial flexibility. Higher leverage can restrict the company’s ability to fund R&D, expansion or absorb shocks, and may increase vulnerability to rising borrowing costs or covenant pressures.