Weak Cash ConversionSharp deterioration in operating cash flow and a materially negative free cash flow indicate earnings are not converting to cash, likely from working-capital or higher capex/tooling. This constrains funding for growth, debt reduction, and dividends, posing a medium-term liquidity risk.
Rising LeverageBorrowing has increased significantly faster than equity, elevating financial leverage and interest exposure. Higher leverage reduces strategic flexibility, raises refinancing risk through industry cycles, and magnifies the impact of any future cash-flow weakness on solvency metrics.
Thin, Volatile MarginsLow and inconsistent margins leave limited buffer against raw-material swings and OEM cost-down pressures common in auto supply. Persistent margin volatility undermines forecastability of cashflows and returns, complicating investment planning and long-term margin recovery prospects.