Negative Operating Cash FlowA sharp fall to negative operating cash flow undermines liquidity and the company's ability to fund working capital and service delivery from internal cash. Over several months this can force reliance on external financing or supplier concessions, weakening operational resilience and execution.
Declining Revenues And ProfitabilitySustained revenue decline and negative net income erode scale and operating leverage, pressuring margins and the ability to invest in capabilities. If these trends persist over months, contract renewals and pricing power may weaken, making recovery and margin restoration harder.
Erosion Of Asset And Equity BaseA shrinking asset and equity base reduces cushion against shocks and can limit collateral for credit. Over a medium-term horizon this constrains investment in service capacity and may increase funding costs, raising solvency and operational risk for delivering large or long-duration contracts.