Negative ProfitabilityA deeply negative net margin shows the company is losing money on operations despite revenue growth. Persisting losses erode equity, limit retained earnings, and must be corrected through price, cost or project mix changes to achieve sustainable profitability.
Cash Flow ShortfallsConsistent negative operating and free cash flows constrain the firm's ability to fund development cycles and capex internally. Over months this forces reliance on external financing or asset sales, raising execution and refinancing risk especially if margins remain weak.
Weak Return On EquityA negative ROE indicates the company is failing to generate returns from shareholders' capital. That structural inefficiency hampers capital formation, makes equity financing dilutive or costly, and signals the need for strategic or operational fixes to restore investor returns.