High LeverageA D/E of 4.1 denotes heavy reliance on debt financing, raising interest expense and refinancing risk. This structural leverage limits financial flexibility, increases vulnerability to rate moves and economic shocks, and constrains investment choices until leverage is meaningfully reduced.
Negative Free Cash Flow GrowthNegative free cash flow growth undermines the company's ability to deleverage, fund capex or sustain dividends from internal resources. Persisting FCF deficits force reliance on external financing, increasing funding costs and magnifying the impact of the firm's already-elevated leverage.
Weak Cash ConversionAn OCF/Net Income below 1 indicates earnings are not fully converting into cash, raising questions about earnings quality and working capital dynamics. This reduces internal liquidity and makes the business more dependent on financing to cover operations and debt servicing over the medium term.