Persistent Losses And Negative MarginsRecurring net losses and negative margins indicate the company has yet to restore profitability. Over 2–6 months, this compresses retained earnings, limits reinvestment capacity, and keeps pressure on management to cut costs or improve product mix to avoid continued erosion of shareholder value.
High Leverage And Negative EquityNegative shareholder equity and elevated debt ratios create solvency and refinancing risk. This structural leverage reduces financial flexibility, increases interest burden, and raises the probability of covenant stress or difficult financing terms within months unless deleveraging or capital measures are undertaken.
Recent Revenue DeclineA material recent decline in revenue signals reduced volumes or pricing pressure in core markets. Falling top-line weakens operating leverage, makes fixed costs harder to cover, and complicates recovery of margins over the medium term unless volumes or realizations improve through market or operational changes.