Negative Operating/Free Cash FlowPersistent negative operating and free cash flow weakens the company's ability to self-fund inventory, working capital and expansion. Over time this forces reliance on external financing, increasing refinancing and interest risk and constraining strategic options if not reversed.
Elevated Debt LevelsNotable total debt increases leverage the business and raise fixed obligations. If cash generation stays weak, debt servicing can pressure margins and liquidity, limit capital allocation flexibility, and increase vulnerability to interest-rate or demand shocks over the medium term.
Net Profit Margin DeclineA declining net margin means less of revenue converts to earnings, reducing retained cash and return on invested capital. If structural (higher costs or pricing pressure) this trend hampers long-term cash flow improvement and weakens the balance between growth and profitability.