Negative Cash FlowPersistent negative operating and free cash flows indicate ongoing cash burn and limited internal funding for growth or capex. Over months this constrains strategic flexibility, increases reliance on external financing, and raises execution risk if capital markets tighten or funding costs rise.
Unprofitable OperationsNegative net profit and EBIT margins show core operations are loss-making, limiting retained earnings and reinvestment capacity. Without sustained margin recovery, scale alone may not produce positive returns, making profitability a multi-quarter structural challenge rather than a temporary fluctuation.
Negative Return On EquityA negative ROE signals the company is not generating returns from shareholders' capital, highlighting structural issues in pricing, cost control, or asset utilization. Persistently negative ROE erodes investor capital and complicates long-term funding and credibility with lenders and partners.