High LeverageA high debt-to-equity ratio increases interest-rate sensitivity and refinancing risk for a financial institution focused on long-term project loans. Over months this constrains financial flexibility, magnifies funding cost swings, and raises the stakes on asset quality and capital adequacy under stress scenarios.
Negative Cash FlowsPersistent negative operating and free cash flows signal that accounting profits are not being converted to cash, increasing reliance on external funding or government support. This undermines self-funded growth, heightens liquidity risk, and may force tighter lending or higher borrowing costs over the medium term.
Operating Margin VolatilityFluctuating EBIT/EBITDA margins point to variability in operating efficiency or funding costs across periods. For a lender of renewable projects, such volatility can reduce predictability of earnings and stress provisioning models, complicating capital planning and risk management over the next several quarters.