Negative Cash ConversionPersistent negative OCF and FCF indicate earnings are not converting to cash, likely from working-capital build or reinvestment. This structural cash gap forces external financing or equity issuance, raising long-term funding risk and constraining organic investment or dividends.
Rising Absolute DebtWhile leverage ratios improved, absolute debt has grown materially year-over-year. Higher nominal borrowings increase interest and refinancing exposure; combined with weak cash conversion this elevates default and liquidity risk if margins or sales slow.
Margin Volatility / Cost PressureFluctuating margins and recent EBIT compression point to sensitivity to input costs, product mix or pricing dynamics. Margin instability reduces earnings predictability, complicates capital allocation and raises the bar for sustaining returns during commodity or demand shocks.