Historical Negative Equity And Weak Balance SheetPersistent negative equity historically signals cumulative losses and high financial risk. A structurally weak balance sheet limits the company's ability to invest, raises refinancing and covenant risks, and constrains strategic options if profits and cash flow do not sustainably recover.
Inconsistent Operating Cash Flow And Negative FCFInconsistent OCF and negative free cash flow erode financial flexibility and raise dependence on external financing to fund capex, R&D, and working capital. Structurally weak cash generation increases vulnerability to earnings shocks and limits reinvestment capacity.
Deteriorating Gross And EBITDA Margins With Revenue VolatilityFalling gross and EBITDA margins indicate rising cost pressure, pricing weakness, or adverse product mix. Coupled with volatile revenue, this undermines sustainable profitability and operating leverage, making long-term planning and margin recovery more challenging without structural changes.