Severe Free Cash Flow DeclineA dramatic fall in free cash flow and very low cash conversion of net income signal that reported profits are not generating cash. This weak cash conversion threatens the company’s ability to fund working capital, capex or service debt without external financing, a material structural risk.
Rising Total Debt TrendAlthough current leverage is moderate, the upward trend in total debt raises refinancing and interest burden risk. Combined with poor cash generation, rising debt could reduce financial flexibility, increase funding costs, and impair the company’s ability to pursue strategic investments.
Margin Pressure EmergingA decline in net margin, albeit slight, indicates potential cost, mix or pricing pressures. If this compression persists, it could erode the company’s profitability buffer and limit capacity to fund R&D or absorb higher financing costs, impacting sustainable earnings power.