Operating Cash Flow WeaknessZero operating cash flow undermines the company’s ability to self-fund working capital, capex, or strategic initiatives. Even with rising revenue, poor cash conversion creates persistent liquidity reliance on financing and limits sustainable reinvestment and shareholder returns over the medium term.
Sharp Gross Margin CompressionA severe drop in gross margin suggests structural pricing pressure or rising input costs in trading/logistics. Unless addressed through sourcing, pricing, or service mix changes, lower gross margins threaten long-run profitability and require sustained revenue growth to offset weaker unit economics.
Negative Returns And Equity ErosionNegative ROE and falling shareholders' equity indicate the company is not generating returns on invested capital and is eroding net asset value. Over months this can limit investor confidence, constrain capital raising, and signal deeper issues in cost structure or strategy execution.