Weak Balance SheetNegative equity and high leverage indicate structural solvency risk and constrained financial flexibility. Over months this can limit access to credit, force deleveraging or asset sales, and increase refinancing risk, undermining long‑term strategic options.
Persistent Negative Free Cash FlowOngoing negative free cash flow and poor cash conversion limit the firm's ability to fund operations or invest without external financing. Structurally weak cash generation increases reliance on debt or equity raises and heightens liquidity risk over the medium term.
Operational Profitability PressureNegative profitability and declining revenues signal structural margin and execution issues. Sustained losses erode capital, impede reinvestment in products and property, and make it harder to restore sustainable earnings without significant operational changes.