Negative Operating Cash FlowPersistent negative operating cash flow from rising working-capital needs weakens internal funding and can signal execution or collection issues. Over several quarters this undermines free cash generation, forcing reliance on external financing and reducing ability to self-fund capex or dividends.
Reliance On Financing ActivitiesDependence on financing to cover operating shortfalls increases exposure to credit markets and cost of capital. If external funding becomes constrained or more expensive, the company’s operating plans and growth investments could be curtailed, raising long-term execution and liquidity risk.
Declining EPS GrowthNegative EPS growth despite strong revenue expansion suggests margin volatility, non-operational charges, or share dilution that impairs earnings quality. If earnings per share don't recover, investor returns and retained earnings for reinvestment may be constrained, impacting medium-term financial strength.