High Financial LeverageA debt-to-equity ratio of 1.55 indicates substantial reliance on debt financing, raising interest burden and refinancing exposure. Elevated leverage limits strategic flexibility, increases vulnerability to macro shocks, and can strain cash flow allocation over the medium term.
Negative Revenue TrendDeclining top-line growth suggests weakening demand or loss of market share. Persistent negative revenue trends undermine economies of scale, compress future margin potential, and make sustaining investment, dividend policies and debt service more challenging over time.
Margin CompressionFalling gross and net margins point to rising cost pressures or pricing challenges. Margin erosion reduces retained earnings and free cash flow, weakening the company's ability to invest, service debt, and sustain shareholder payouts absent structural fixes.