Negative Operating Cash FlowNegative operating cash flow signals the core business is not generating sufficient cash from operations, forcing reliance on financing or asset sales. Over months this constrains reinvestment, working-capital management, and credit access, increasing liquidity and solvency risk if not corrected.
Eroding Margins And Weak ProfitabilitySignificant margin compression and negligible net margin reflect structural pressure from higher input costs or pricing power loss. Persistently thin profits reduce capacity to fund capex, pay dividends, or build reserves, undermining long-term competitiveness and financial health.
Declining Return On EquityA sharp fall in ROE indicates the company is converting equity into earnings far less effectively than before, pointing to deteriorating operational efficiency or poor capital allocation. Over time this weakens shareholder returns and can limit access to equity capital.