High LeverageVery high leverage constrains financial flexibility and raises refinancing and interest-rate risk. In a capital-intensive cement business, a D/E above 4 materially increases vulnerability to demand shocks and limits ability to fund capex or weather extended weak cycles without asset sales or equity raises.
Negative Cash FlowPersistent negative operating and free cash flows undermine the company’s ability to service debt, invest in maintenance or expansion, and fund working capital from operations. Structurally weak cash generation heightens reliance on external financing in the medium term.
Ongoing LossesContinued net losses and negative margins erode equity and limit retained-capital accumulation. Over months this impedes organic reinvestment, damages return-on-equity prospects, and increases pressure on management to execute turnaround or restructuring measures to restore long-term viability.