Negative Operating Cash FlowNegative operating cash flow shows the core business is not generating sufficient cash to fund operations. This is a durable liquidity constraint that forces reliance on external financing or equity actions, limiting reinvestment, margin recovery initiatives, and resilience to shocks.
Loss-making OperationsPersistently negative profitability metrics indicate structural operating inefficiencies or pricing/cost pressures. Continued losses erode equity, hamper retained earnings, and make it harder to fund growth internally; without sustainable margin improvement, long-term viability is at risk.
Rising Leverage And Negative ROEHigher debt reliance combined with negative ROE raises financial risk and interest burden, constraining strategic flexibility. With weak cash generation, increased leverage can magnify downside risk and limit the company’s ability to pursue investments or absorb future operating shortfalls.