Cash Conversion WeakeningA declining ability to convert accounting profits into operating cash can strain funding for capex, R&D, or dividends over multiple quarters. If persistent, it reduces financial agility and increases reliance on working capital management or external funding.
Margin PressureEroding gross margin signals rising input or delivery costs, or pricing pressure from competitors. Over the medium term this can compress operating profits unless offset by efficiency gains, higher-value services, or price increases that clients accept.
Modest Growth RatesSub-5% top-line and very low EPS growth may limit scale benefits and weaken competitive positioning in a fast-evolving IT market. Persistently modest growth constrains margin expansion and the ability to fund large strategic initiatives from internal cash.