Rising LeverageAn increasing reliance on debt reduces financial flexibility and raises refinancing and interest-rate exposure. Persisting higher leverage can constrain strategic investments and amplify downside in a downturn, making consistent cash generation and liability management critical over the medium term.
Thin Net Profit MarginA slim net margin offers limited buffer versus raw-material or energy price volatility and competitive pricing pressure. Sustained low margins constrain the capacity to build reserves, invest in growth or absorb shocks, increasing sensitivity to adverse cost cycles over coming quarters.
Significant Investing And Financing OutflowsLarge outflows for capex, acquisitions or debt repayments can deplete cash buffers and limit flexibility to fund working capital or opportunistic growth. If sustained, they could force additional external funding at higher cost, elevating medium-term financial risk.