Elevated Leverage Versus EquityDebt exceeding equity materially increases financial risk and reduces balance sheet flexibility. Over the medium term, higher interest and principal obligations heighten default and refinancing risk if operational cash generation falters, constraining ability to fund growth from internal sources.
Persistently Negative Free Cash FlowLarge negative free cash flow despite an operating cash flow improvement implies heavy capex or working capital needs. Over months, sustained FCF deficits force recurring external financing, increasing dilution or leverage and risking interruption to project timelines and long-term value creation.
Volatile Earnings History And Low EBITDAA volatile multi-year record with low EBITDA relative to EBIT shows earnings are sensitive to non-cash items, costs and one-offs. This weakens confidence in earnings durability; persistent variability raises execution and commodity-price risk for sustaining margins and covering fixed obligations over time.