Negative Operating Cash FlowPersistent negative operating and free cash flows indicate the core business does not generate cash internally, forcing dependence on external financing. Over months this constrains capital for inventory, production and investment, and raises rollover and liquidity risks.
Sustained Operating LossesTwo consecutive years of negative EBIT and net income show structural profitability issues in operations. Without durable margin improvement or cost restructuring, losses will continue to erode equity and limit reinvestment, impeding competitive positioning long term.
Rising LeverageIncreasing debt-to-equity and rising leverage raise financial risk and interest burden. Coupled with negative cash flow and losses, higher leverage reduces flexibility to fund operations or absorb shocks and elevates refinancing and covenant risks over the medium term.