Revenue VolatilitySharp year-to-year swings in top-line undermine predictability of profits and capital planning. Demand or volume instability strains capacity utilization and makes multi-period investment decisions riskier, reducing the visibility required for stable margin and cash-flow expansion over the medium term.
Historical Earnings SwingsPrior periods of losses show the business has recurring operational or market challenges. Even with recent gains, this pattern raises the probability of profit reversals, which can erode equity, limit reinvestment capacity, and force conservative capital allocation for resilience rather than growth.
Inconsistent Cash Flow QualityIntermittent negative operating and free cash flow in prior years signals working-capital or execution volatility. That inconsistency can constrain sustained reinvestment, increase need for precautionary liquidity, and amplify execution risk for multi-quarter projects or dividend commitments.