Negative Free Cash FlowMaterial negative free cash flow constrains internal funding for capex, working capital, and debt servicing. Over months this can force reliance on external financing, increase interest costs or delay strategic investments, weakening long-term operational momentum.
Rising LeverageAn increased debt-to-equity ratio signals growing dependence on borrowings. Higher leverage raises fixed interest obligations, reduces financial flexibility, and makes the company more sensitive to rate rises or sales volatility, pressuring margins and credit profiles.
Modest Revenue Growth & EBIT DeclineStagnant top-line growth coupled with declining EBIT limits scale benefits and suggests demand or mix challenges. Over a multi-month horizon this hampers margin expansion, weakens bargaining power with buyers, and heightens reliance on cost cuts to sustain profits.