I would ask what is causing the decline in revenue in 2nd and 4th year. In particular, I would try to figure out if this is a pricing or volume problem, and if it’s cyclical (ie driven by the economy) or non-cyclical. If it’s non-cyclical, I would try to evaluate if the revenue downfalls are one-time or if volatility is a regular feature of the business.
In addition, if a business is regularly experiencing volatility, I would be concerned about its ability to meet interest and mandatory debt repayments if the company has a significant debt load, and it may be worthwhile to examine the company’s debt metrics like Debt / EBITDA or (EBITDA – capex) / (cash interest expense + mandatory debt repayment) in closer detail.