Declining RevenueMaterial revenue decline undermines scale economics and signals weakening demand or lost market share. Over several quarters this erodes the ability to cover fixed costs, limits reinvestment capacity, and makes margin recovery and structural turnaround more difficult.
Severe Profitability ShortfallDeep negative margins and sharply negative ROE reflect persistent losses and destruction of shareholder value. This structural profitability gap constrains internal funding for growth, raises likelihood of recapitalization, and indicates fundamental issues in pricing, costs, or product mix.
Weak Operating Cash FlowSustained negative operating cash flow signals that core operations do not generate sufficient cash to fund activities. Over months this forces reliance on external financing or asset sales, increasing refinancing and dilution risk and limiting ability to invest in recovery initiatives.