Negative Equity / High LeverageNegative shareholders' equity and effectively inverted leverage signal solvency pressure and materially constrain borrowing capacity. Over months this limits the company's ability to win large contracts, invest in backlog, or absorb project delays without external support.
Weak Revenues And Compression Of MarginsSteep revenue decline coupled with razor-thin gross and net margins undermines the core business economics. In engineering & construction, low margins reduce capacity to cover fixed costs and invest in project execution, pressuring sustainable profitability over quarters.
Negative Operating And Free Cash FlowsPersistent negative operating and free cash flows erode liquidity and force reliance on external financing or asset sales. Over a multi-month horizon this restricts capital expenditure, increases refinancing risk, and hampers the ability to fund working capital for contracts.