Inconsistent Revenue GrowthFluctuating and recently declining revenue undermines visibility into future earnings and capacity utilization. In textiles, inconsistent top-line trends limit the company's ability to plan fixed-cost absorption, invest in scale, and maintain margin improvements over the medium term without steadier demand.
Operating Cash Flow VolatilityVolatile operating cash flow and a weaker operating-cash-to-net-income ratio indicate earnings are not consistently converting to cash. Persistent volatility restricts working capital management, raises financing needs in seasonal cycles, and increases execution risk for strategic initiatives.
Significant Remaining DebtDespite deleveraging progress, material outstanding debt maintains interest and refinancing exposure. In a cyclical textile sector, elevated leverage can constrain strategic flexibility, increase vulnerability to margin pressure, and require cash diversion to servicing rather than growth or modernization.