Negative Equity / Balance Sheet DeficitA material equity deficit (liabilities exceeding assets) is a persistent solvency issue that reduces financial flexibility, limits access to conventional financing, and raises restructuring risk. This structural weakness impairs the firm's ability to fund projects or absorb prolonged market weakness.
Consistently Negative Operating And Free Cash FlowSustained negative operating and free cash flow signals an inability to generate cash from core operations, forcing reliance on external funding or asset disposals. Over months this undermines working capital, delays project completions, and heightens liquidity and refinancing risk.
Falling Revenue And Prolonged LossesA multi-year revenue decline, deteriorating gross margins and consecutive net losses indicate structural operational challenges. Persistently negative EBIT undermines profitability recovery prospects, constrains reinvestment in projects, and increases dependence on non-operating measures to stabilize earnings.