Negative Free Cash FlowA large, persistent negative free cash flow reduces internal funding for capex, working capital and shareholder returns. Over months this forces reliance on external financing or asset discipline, constraining strategic investments and increasing refinancing or liquidity risk.
Weak Operating Cash GenerationNegative operating cash conversion indicates earnings are not translating into cash, pointing to working capital pressure or margin timing issues. Structurally weak cash conversion can limit sustainable growth, force higher borrowing and reduce runway for marketing or capacity investments.
Rising Operating Expense PressureA decline in EBIT margin despite revenue growth suggests cost or SG&A pressure. If persistent, margin erosion can weaken free cash flow and return metrics, requiring either pricing power or structural cost fixes to restore durable profitability.