Persistent Negative Net MarginsDespite EBITDA improvements, the company still reports negative net margins on a structural basis. That implies non-operational costs, interest or tax factors materially erode bottom-line returns, limiting retained earnings and constraining long-term equity accumulation and shareholder value creation.
Elevated Reliance On Debt FinancingA lower equity ratio and prior high leverage mean the business remains more sensitive to interest costs or tighter credit markets. Reliance on debt can limit strategic flexibility, raise refinancing risk, and amplify earnings volatility if cash flows weaken, making funding growth more costly over time.
Weaker Operating Cash Flow ConversionDeclining operating cash flow and a weakened conversion of earnings to cash point to working-capital volatility and operational timing effects. This reduces internal funding for capex, acquisitions or payouts, potentially forcing reliance on external financing and constraining durable investment in growth initiatives.