Negative Free Cash Flow TrendsPersistent negative free cash flow and an operating cash flow to net income shortfall indicate the business struggles to convert earnings into cash. Over 2–6 months this impairs liquidity, forces reliance on financing, and limits ability to fund working capital or capex organically.
Negative Operating (EBIT/EBITDA) MarginsNegative EBIT/EBITDA margins point to structural operating inefficiencies or unfavorable cost mix in the core trading business. Without margin improvement, profitability will remain fragile, making earnings and cash generation vulnerable to cost or commodity price swings.
Revenue And Profitability Volatility / Inconsistent ROELarge swings in revenue and erratic returns on equity reduce predictability for investors and management planning. This volatility raises execution risk for sustaining growth, complicates capital allocation, and increases the chance that good recent results may not persist long term.