High LeverageA debt-to-equity ratio of 3.62 indicates significant reliance on borrowed funds. Elevated leverage increases vulnerability to funding stress, raises interest expense sensitivity, and constrains strategic flexibility, making sustainable earnings and capital management more challenging over time.
Weak Cash Flow GenerationPersistent negative operating and free cash flows undermine the company's ability to self-fund growth, service debt, and pay dividends. Structural cash conversion weakness increases dependence on external financing and elevates refinancing and liquidity risk over the medium term.
Profit Margin PressureDeclining and volatile margins suggest rising costs, credit losses, or pricing pressure. Margin compression erodes the cushion for shocks and limits retained earnings for capital needs, making it harder to sustain ROE and reinvestment without structural fixes to margins or cost base.