Free Cash Flow DeteriorationTurning FCF negative signals weaker internal funding for capex, working capital, and debt servicing. Over months this elevates financing risk, may force higher external borrowing or slower growth, and reduces the cushion for unexpected disruptions.
Weak Cash ConversionLow cash conversion raises concerns about earnings quality and sustainability of reported profits. If accruals or noncash items drive income, the company may struggle to convert earnings into spendable cash needed for leases, dividends, or debt repayment.
Rising Debt TrendAn upward trend in total debt combined with weakening FCF increases interest and refinancing risk. Over a multi-month horizon, higher leverage can pressure margins, limit strategic flexibility, and magnify exposure if credit markets tighten.