High LeverageSignificant leverage raises financing and solvency risk, constraining capital allocation and increasing interest burden. In environments of volatile earnings or cash flow, high debt can force defensive actions, limiting the company's ability to invest in growth or withstand downturns.
Inconsistent Cash-flow ConsistencyWhile FCF has improved, historical inconsistency in cash conversion creates uncertainty for debt servicing and capital planning. Persistent variability reduces predictability of funding for capex, acquisitions or deleveraging, increasing reliance on external financing during weak periods.
Margin Volatility (EBIT/EBITDA)Fluctuating EBIT/EBITDA margins point to inconsistent operational control or exposure to variable costs and pricing. Such volatility undermines earnings predictability, complicates long-term planning, and can weaken returns on invested capital when margins compress unexpectedly.