Negative Equity / High LeverageNegative shareholder equity signals liabilities exceed assets and a highly leveraged capital structure. This structural weakness restricts financing options, raises insolvency risk, and limits capacity for capex or restructuring, undermining medium-term operational stability.
Persistent Negative Cash GenerationNegative operating and free cash flow indicate the business cannot self-fund operations or investments. Over a 2–6 month horizon this necessitates external funding, increasing refinancing risk and potentially forcing asset sales or cutbacks that impair long-term competitiveness.
Falling Revenue And Unprofitable OperationsMaterial revenue decline alongside negative EBIT/EBITDA margins reflects structural cost or pricing pressures and poor margin sustainability. Without clear operational fixes, these trends erode ability to invest in product, capacity, or sales, damaging medium-term market position.