Negative Revenue GrowthA shift to negative revenue growth signals weakening demand or market share erosion. Over a 2–6 month horizon this can undermine scale economics, reduce leverage on fixed costs, and require strategic actions to revive sales or diversify channels to restore growth.
Declining Net Profit MarginA falling net margin reflects rising cost pressure or lower pricing power, trimming retained earnings and ROE. Persistently compressed net margins limit reinvestment and dividend flexibility, and indicate structural profitability issues that could persist without cost or pricing fixes.
Volatile Free Cash Flow GrowthLarge swings in free cash flow reduce predictability for capex, dividends, and M&A. Even with good conversion metrics, volatility forces larger cash buffers or intermittent external funding, constraining strategic planning and increasing risk during adverse industry cycles.