High LeverageExtremely large debt relative to equity leaves the firm highly sensitive to funding costs, interest-rate moves and refinancing risk. For a credit-services business, leverage magnifies credit-loss exposure and can constrain strategic flexibility during stress periods.
Volatile Cash FlowLarge swings between strongly positive and deeply negative cash flows reduce confidence in recurring free cash generation. This volatility complicates capital planning, debt servicing and dividend reliability, and signals exposure to working-capital, timing or credit-cycle shocks.
Margin / Profitability SwingsSubstantial year-to-year operating-margin variation undermines earnings quality and predictability. Without clear, stable margins, forecasting cash flow and return on capital is harder, increasing execution risk for growth or deleveraging plans.