Weak Cash ConversionOperating cash flow trailing net income signals earnings are not fully translating into cash. Persistent weak cash conversion reduces internal funding for working capital, capex or debt servicing and can force external financing within months.
Negative Free Cash FlowA shift to negative free cash flow constrains the company's ability to reinvest, pay down debt, or return capital. If this persists, it increases reliance on external funding and raises liquidity and execution risk over the medium term.
Margin Compression / Mix RiskCompressed gross and operating margins suggest adverse mix or rising costs that have eroded past earnings power. Continued margin pressure would limit profit sustainability and heighten earnings volatility over coming quarters.