Deep Negative ProfitabilityA deeply negative net margin indicates the company is burning through revenue to cover costs, which undermines retained earnings and limits the ability to self-fund growth. Persistent losses will constrain investments, raise refinancing risk, and require sustained margin improvements to achieve durable financial health.
Negative ROE And Low Equity RatioNegative ROE shows shareholders are not receiving commensurate returns, while a low equity ratio signals limited capital buffer. Structurally, this increases vulnerability to shocks, makes capital raises more dilutive or costly, and limits flexibility for strategic initiatives over the medium term.
Weakening Free Cash Flow GrowthDeclining free cash flow growth points to weakening cash-generation momentum even though current FCF is positive. Over months, this trend can strain the ability to fund working capital, capex or debt reduction, reducing strategic optionality and increasing dependence on external financing if not reversed.