Weak Cash ConversionPersistent negative operating cash flow shows earnings are not translating into cash. This structurally limits self-funding, forces reliance on external financing for working capital and capex, and raises liquidity and refinancing risk over the next several months.
Rising LeverageLeverage increasing to above 1x materially reduces financial flexibility. Higher debt raises interest costs, constrains capital allocation, and amplifies vulnerability to margin or demand shocks, making the company more sensitive to macro or sector stress.
Thin, Deteriorating MarginsMargins have weakened and remain thin, leaving earnings highly sensitive to input-cost inflation or pricing pressure. Low margin structure limits the ability of revenue growth to boost cash flow and returns, reducing operational resilience over the medium term.