Weak Cash ConversionPersistent negative operating and free cash flow means reported profits do not translate into liquidity, forcing external financing or asset draws to run the business. This undermines earnings quality, constrains capex and working-capital plans, and elevates insolvency risk until cash conversion turns positive.
Historical Leverage RiskA history of high leverage and past negative equity signals execution and capital-structure vulnerability. Even with current improvement, legacy instability can limit cheap capital access and raise stakeholder skepticism, increasing refinancing and strategic execution risk in the medium term.
Earnings VolatilityPrior large losses and swings in operating profitability reduce confidence that recent strong margins are repeatable. Persistent volatility complicates forecasting, may prompt conservative creditor terms, and elevates the chance that short-term gains reverse before durable operational improvements take hold.