Margin CompressionDeclining gross and EBIT margins reduce the company's ability to sustain profitability through cost cycles. Persistent margin pressure would erode returns on new models and limit pricing flexibility, making it harder to finance electrification, safety upgrades, or dealer support without cutting other investments.
Falling Free Cash FlowA significant drop in free cash flow constrains the firm's capacity to self-fund capex, R&D and shareholder returns. If FCF weakness persists, Mitsubishi may need to slow program spending, seek external financing, or reduce dividends, weakening strategic optionality over the medium term.
Decreasing Cash Position / Liquidity RiskA falling cash balance, despite stronger equity, narrows the short-term liquidity buffer for supply-chain shocks or unexpected costs. Reduced cash reserves increase reliance on external funding during downturns, raising refinancing and interest-rate exposure that can pressure operations and timetables.