Declining Revenue TrendSustained negative revenue growth reduces scale and weakens fixed-cost absorption, pressuring margins and long-term competitiveness. Continued top-line decline undermines cash generation and investment capacity, making strategic repositioning and margin recovery more difficult over the medium term.
Negative Operating & Free Cash FlowPersistent negative operating and free cash flows erode liquidity and force reliance on external financing. This limits the company's ability to fund inventory, marketing, and capex, raises refinancing risk, and constrains the time available to execute structural fixes without additional capital.
Rising Leverage And Negative ROEIncreased leverage combined with negative ROE and net losses reduces financial flexibility and raises interest burdens. Over time this pressures profitability, can trigger covenant or refinancing constraints, and may force operational or capital-structure changes that impede growth initiatives.