Declining Revenue And Negative MarginsSustained revenue declines and negative gross/net margins point to fundamental demand, pricing or cost issues that impair core profitability. Over time this erodes competitive positioning, reduces reinvestment capacity, and makes it harder to scale margins even if top-line growth resumes.
Persistent Negative Free Cash FlowOngoing negative free cash flow signals that operations do not generate sufficient cash to cover investments and working capital. Structural cash deficits force dependence on external financing or equity, constrain capex and R&D, and raise sustainability concerns for long-term operations.
Negative ROE And Shrinking AssetsNegative ROE indicates the business is destroying shareholder value rather than creating it, while declining total assets suggest retrenchment or impairments. Together these structural signs limit growth capacity, hinder competitiveness, and may require strategic restructuring to reverse.