Uneven Cash Flow HistoryHistoric swings from negative to positive FCF imply cash conversion risk across cycles. While recent FCF is constructive, past volatility suggests working-capital or project-timing sensitivity that could constrain consistent debt reduction or steady reinvestment if revenues or margins weaken.
Rising Absolute DebtAn increase in nominal debt despite improving D/E signals the company has taken on additional leverage. If growth slows or cash flow weakens, higher absolute debt raises refinancing and interest risks and could limit strategic optionality over the medium term.
Earnings VolatilityYear-to-year margin and earnings swings reflect sensitivity to project mix, contract timing, or cost absorption in IT services. Persistent volatility reduces earnings predictability, complicates planning, and may require higher reserves or conservative investment pacing to preserve cash.