Capital Expenditure ChallengesHigh capital expenditures can strain free cash flow, potentially limiting the company's ability to invest in growth and manage financial obligations effectively.
Financial RiskDespite a strong equity base, a high liabilities to equity ratio indicates potential financial risk, which could affect long-term financial health if not managed.
Free Cash Flow DeclineA decline in free cash flow can limit the company's ability to fund new projects and respond to market changes, impacting growth and operational flexibility.