Weak Cash GenerationPersistently negative free cash flow limits self-funding of capex, debt servicing and reduces the company's ability to build cash buffers. Over a 2–6 month horizon this raises refinancing and liquidity risk and restricts capacity for investment or cushioning against demand shocks.
Rising LeverageA sharp increase in leverage materially reduces financial flexibility and increases interest burden. With compressed profitability, higher debt amplifies downside risk, limits strategic options and heightens vulnerability to rate or demand pressures over the medium term.
Compressed ProfitabilitySubstantially lower margins weaken earnings resilience and cash conversion, leaving less buffer for rising input or logistic costs. Restoring sustainable margins is required to improve returns and pay down debt; absent margin recovery, profitability remains a structural constraint.