Weak And Erratic Cash FlowPersistent negative and inconsistent operating/free cash flows undermine the firm's ability to self-fund capex, service debt, or return capital to shareholders. Over the medium term, this increases reliance on external financing, elevates refinancing risk, and constrains strategic flexibility if cash conversion issues persist.
Declining Revenue And EPS CollapseNegative revenue growth and a dramatic EPS contraction point to deteriorating earnings quality and demand or execution challenges. This weakens internal funding for reinvestment, heightens the probability of continued margin pressure, and signals structural issues that could impair sustainable profitability across several quarters.
Rising Leverage RiskIncreasing total debt and faster-growing liabilities relative to assets raise leverage and solvency concerns. Higher indebtedness reduces financial flexibility, increases interest expense exposure, and makes the company more vulnerable to rate or market stress, limiting strategic options and elevating medium-term financial risk.