Negative EquityTechnically negative equity signals deep balance-sheet strain, limiting the firm's ability to raise debt or equity and increasing refinancing, covenant, and counterparty risks. Over months this can force asset sales, project delays, or restructuring, impairing competitive stance and execution.
No Operating Cash FlowLack of operating cash generation and zero free cash flow undermines the firm’s capacity to finance construction, complete projects, and service liabilities internally. Persisting cash deficits increase reliance on external funding, raising refinancing risk and potential project execution delays.
Declining ProfitabilitySustained revenue declines and negative gross/NET/EBITDA margins indicate weakening core operations and margin compression. Over months, this erodes retained earnings needed to rebuild equity, reduces reinvestment capacity, and weakens competitiveness versus better-capitalized peers.