Deep Negative ProfitabilitySustained very weak margins indicate the core business is not currently generating economic profit. Deep negative EBIT and net margins erode retained capital, constrain reinvestment, and undermine long-term competitiveness unless structural margin improvements occur.
Ongoing Cash BurnMaterially negative operating and free cash flows imply the company must rely on external financing or draw on equity to operate. Continued cash burn threatens sustainability, increases funding risk, and limits the firm's ability to invest in growth or weather downturns.
Negative ROE And Balance-sheet VolatilityA deeply negative ROE signals persistent value destruction for shareholders. Historical balance-sheet volatility and episodes of negative equity highlight capitalization risk and reduce investor confidence in long-term stability and the firm's ability to finance recovery without dilution.