Persistent Negative Operating Cash FlowSustained negative operating cash flow and falling free cash flow erode liquidity and force reliance on external financing or asset liquidation. Over months this can constrain working capital, limit raw‑material purchases, and impair the firm's ability to fulfill orders or invest in efficiency improvements.
Severe Revenue DeclineAn extreme year-over-year revenue drop signals major loss of demand, customer contracts, or capacity utilization. This scale contraction makes fixed costs harder to cover, weakens bargaining power with suppliers, and materially reduces the runway for operational turnaround without meaningful revenue restoration.
Negative And Volatile ProfitabilityNegative net margins and volatile operating profitability point to structural cost or efficiency problems. Unpredictable earnings hinder reinvestment, weaken retained earnings, and raise the risk that marginal customers or contracts are unprofitable, complicating sustainable margin recovery over the medium term.