Recent Revenue DeclineA decline in annual revenue signals weakening top-line momentum or market share loss. Persisting revenue contraction limits ability to leverage fixed costs, slows margin expansion and reduces funds available for strategic initiatives, making multi-month recovery dependent on demand or share gains.
Rising LeverageAn increased debt-to-equity ratio raises financial risk by boosting interest obligations and reducing balance sheet flexibility. Higher leverage can constrain capital allocation, elevate refinancing risk if rates change, and pressure net margins and investment capacity over the medium term.
Declining Net Profit MarginA falling net margin despite decent gross and EBIT margins suggests growing non-operating costs, interest burden or inefficiencies. This erosion reduces retained earnings and financial cushions, making long-term earnings durability and dividend capacity more vulnerable if trends persist.