Negative EquityNegative shareholders' equity signals a leveraged balance sheet and potential solvency risk, constraining access to capital and increasing refinancing vulnerability. Over months, this can limit strategic flexibility, raise borrowing costs, and force asset sales or equity dilution if not repaired.
Declining RevenueA downward revenue trend erodes the base that supports margins and cash generation. If structural (market share loss or weaker demand), continued revenue contraction reduces operating leverage and long-term growth potential, making profitability gains harder to sustain without revenue stabilization.
Profit Quality ConcernsProfit improvements driven by non-operating items raise sustainability concerns: they may not recur and can mask weaker core results. Over the medium term, reliance on one-off gains undermines confidence in operating performance and complicates forecasting of durable earnings and cash flow.