Cash Flow GenerationNegative operating and free cash flow versus net income indicates earnings are not converting into cash and capex is pressuring liquidity. Persisting weak cash generation can force external financing, restrict reinvestment, and undermine the company’s ability to execute strategic initiatives over several months.
Thin Profitability MarginsVery low net and EBIT margins leave little room to absorb cost inflation, raw material volatility, or competitive pricing pressure. Sustained thin margins constrain internal funding for R&D, capex, and debt servicing, increasing vulnerability to adverse industry or economic shifts in the medium term.
Revenue DeclineA significant multi-year revenue decline erodes scale, reduces fixed-cost absorption, and weakens market position. Without a clear trend reversal, shrinking top-line undermines margins and ROE improvement prospects, making sustainable recovery and investment financing more challenging over the next 2-6 months.