Severe Revenue CollapseAn almost complete revenue collapse is a fundamental risk to scale and business viability. It reduces leverage over fixed costs, erodes recurring cashflows, and forces strategic trade-offs between asset sales, project pauses or cost cuts, any of which can impair long-term market position and execution capability.
High LeverageA debt-to-equity ratio near 2.6 leaves limited room to absorb revenue shocks or fund growth. High leverage increases refinancing, interest and covenant risk, constrains strategic moves, and magnifies earnings volatility—undermining durable financial flexibility across 2–6 months.
Weak Cash ConversionVery poor cash conversion signals inability to turn accounting profits into spendable cash. This limits capex, dividends, and debt servicing, forcing reliance on external funding or asset disposals, and creates sustained liquidity and execution risk until operating cash generation recovers.