Negative Operating Cash FlowPersistent negative operating cash flows are a structural concern: core operations are not producing sufficient cash, forcing reliance on financing or asset disposals. This undermines liquidity, limits reinvestment, and elevates refinancing and solvency risk over the medium term.
Declining Revenues & MarginsRecent revenue declines combined with shrinking gross and net margins indicate weakening demand or rising costs. This erodes scale and operating leverage, making it harder to restore profitability and cash flow without structural changes to pricing, cost base, or product mix.
Falling Return On EquityA declining ROE signals diminishing efficiency in converting equity into profits. Over time this can reflect poor capital allocation or margin compression, reducing the company's ability to generate attractive shareholder returns and constraining strategic investment capacity.