Sustained Revenue DeclineA multi-year revenue contraction erodes scale economics and weakens pricing leverage. Persistent top-line decline makes it harder to cover fixed manufacturing costs, invest in capacity or certifications, and restore margins without a durable recovery in volumes or higher-value product wins.
Negative Operating And Free Cash FlowNegative operating and free cash flow constrain working capital, capital expenditure and debt servicing. Ongoing cash burn increases the need for external financing or asset sales, which can dilute equity holders or force operational retrenchment absent a sustained turnaround.
Persistent Losses And Negative ROENegative ROE and ongoing losses indicate the company is not converting equity into profit, undermining reinvestment and capital attraction. Over time this weak profitability can impair hiring, R&D or qualification investments needed to regain competitive positioning.