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A company should generate positive cash flow from operations, which indicates it is earning money from its core activities. A negative cash flow from operations could signal liquidity issues and difficulties in paying debts.

If accounts receivable grow faster than sales, it may indicate problems in collecting payments from customers. A longer collection period is a red flag, as it suggests inefficient debt collection and potential cash flow problems.

A rapid increase in inventory compared to the cost of goods sold can suggest slow sales and potential problems with stock management. This could lead to lower profit margins as the company might have to sell products at lower prices or take inventory write-offs.

High debt levels, especially interest-bearing debt, combined with low EBIT (Earnings Before Interest and Taxes) and negative operating cash flow, signal potential solvency issues and poor financial health.

If a company has significant goodwill (from acquiring subsidiaries) but its Return on Assets (ROA) is declining, it may indicate that the acquisitions are not generating the expected returns. This could mean the company overpaid for the acquisitions, impacting overall profitability.

If a company is continuously increasing its assets but its ROA is declining, it suggests poor asset utilization, meaning the company is not effectively turning assets into profits.

Accumulated losses arise from consecutive years of negative earnings, depleting retained earnings and leading to negative equity. These could be caused by various factors such as poor cost management, failed investments, or external challenges like economic downturns or regulatory changes. Investors should carefully analyze the causes of these losses, as some may be fixable, while others could pose long-term structural problems for the company.