Profitability CompressionContraction across net, EBIT and EBITDA margins points to rising costs or pricing pressure that erodes cash earnings. Persisting margin degradation reduces free cash flow potential and weakens the company’s ability to fund growth or service debt over the medium term.
High LeverageHeavy reliance on external financing increases interest and refinancing vulnerability, especially if rates rise. Elevated leverage constrains strategic flexibility, raises fixed costs, and heightens default risk, making capital structure a durable concern.
Negative Free Cash FlowPersistent negative free cash flow, driven by capex and weak operating cash conversion, forces reliance on financing to sustain operations. That limits capacity for deleveraging, investments, or shareholder returns and represents a structural funding risk.