Increased LeverageHigher leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and weather economic downturns.
EBIT Margin DeclineA decline in EBIT margin may indicate rising operational costs or inefficiencies, which could affect profitability and competitiveness if not addressed.
Free Cash Flow ConversionInefficient conversion of profits to free cash flow could limit the company's ability to reinvest in growth or return capital to shareholders, affecting long-term value creation.