Profitability ConcernsNegative profitability impacts the company's ability to reinvest in its business and return value to shareholders, posing a risk to long-term financial health.
Increased Financial LeverageHigher financial leverage can strain resources and limit strategic flexibility, increasing vulnerability to economic downturns and interest rate hikes.
Negative Return On EquityNegative ROE indicates inefficient use of equity capital, which can deter investment and hinder the company's ability to attract and retain shareholders.