Negative Net Margin And Ongoing LossesPersisting negative EBIT and net margins erode retained earnings and hamper reinvestment. Continued losses undermine shareholder returns, weaken pricing power, and make it harder to fund R&D or capex internally, increasing reliance on external capital over time.
Severe Free Cash Flow DeteriorationA steep deterioration in free cash flow undermines liquidity and long-term funding capacity. Persistent FCF weakness forces greater dependence on borrowing or equity raises, constrains capital expenditure and working capital investment, and raises solvency risk during downturns.
Weak Cash ConversionAn operating cash flow to net income ratio of 0.11 shows earnings are not converting into cash, signaling accrual-driven profits or working capital strain. Low cash conversion limits ability to self-fund growth, complicates debt servicing, and increases vulnerability to funding shocks.