Rising Total DebtAn upward trend in total debt increases financial leverage and amplifies interest and refinancing risk. Over a 2-6 month horizon, higher debt can constrain discretionary spending, reduce buffer against demand shocks, and force prioritization of cash for servicing rather than reinvestment or growth initiatives.
Free Cash Flow VolatilityVolatile and occasionally negative free cash flow signals inconsistent cash generation after capex. Structurally, this undermines the company's ability to deleverage, fund expansion, or smooth dividends. Persistent FCF variability raises execution risk for long-term investment plans.
Low Net Profit MarginA relatively low net margin despite revenue growth suggests limited end-to-end profitability conversion and sensitivity to cost pressures. Over months, this constrains retained earnings for capex or debt paydown and leaves operating profits vulnerable to commodity or pricing headwinds.