Profitability And Margin WeaknessPersistent negative net income and EBIT margins undermine long-term sustainability: losses erode equity and limit reinvestment. Unless gross margin expansion or structural cost reduction occurs, ongoing unprofitability will constrain cash generation, strategic flexibility and ability to scale profitably.
High Liabilities Relative To AssetsElevated liabilities versus assets increase solvency risk and limit balance sheet optionality. Structurally high obligations can pressure liquidity under stress, raise refinancing and covenant risk, and restrict the company's ability to fund growth or absorb shocks without meaningful equity strengthening.
Historic Cash Flow VolatilityPrior cash flow volatility signals earnings and working-capital sensitivity to demand and operational cycles. Inconsistent cash generation increases reliance on short-term financing and complicates planning for capex or debt reduction, making sustainable operational improvements crucial for medium-term financial stability.