High LeverageIncreased leverage reduces financial flexibility and heightens risk, potentially impacting the company's ability to manage economic downturns or invest in growth.
Thin Profit MarginsDeclining profit margins suggest cost pressures or pricing challenges, which could limit profitability and constrain reinvestment capacity over time.
Volatile Cash GenerationVolatility in cash generation indicates potential working-capital swings and reinvestment needs, which may affect financial predictability and planning.