Rising LeverageMaterial debt growth has left the company more highly leveraged, constraining financial flexibility. Higher interest and principal obligations increase vulnerability to profit or cash-flow swings, limit ability to fund opportunistic investments, and raise refinancing risk over the medium term.
Weak Cash GenerationNegative operating cash flow and persistent free cash flow deficits indicate earnings are not converting to durable cash. This undermines debt servicing and capex funding, forces reliance on external financing, and heightens liquidity and execution risk absent structural working-capital or margin fixes.
Thin, Volatile MarginsLow and inconsistent margins limit the company's ability to absorb input cost increases or invest in growth. Margin volatility complicates forecasting and amplifies leverage and cash-flow risks, making sustained profit improvement a prerequisite for durable financial stability.