Rising LeverageA materially higher debt load meaningfully increases financial risk and interest burden, reducing flexibility to invest or weather downturns. Over the medium term this elevates refinancing and covenant risk, constrains strategic optionality, and raises vulnerability if semiconductor demand softens.
Negative Free Cash FlowA sharp swing to negative free cash flow signals that investments or working-capital needs are outpacing cash generation. Persisting FCF deficits force reliance on debt or equity to fund growth, limit capacity to build cash buffers, and increase funding cost and liquidity pressure over coming quarters.
Weaker Net Income ConversionDeclining net margin and lower ROE indicate that higher below‑the‑line costs or capital structure changes are eroding shareholder returns. Structurally, this weakens the company's ability to convert operating strength into net profits, limiting retained earnings and long‑term return on invested capital.