The word 穷困潦倒 is formed by combining two two-character phrases: 穷困, meaning impoverished and distressed, and 潦倒, meaning downcast and fallen. Each character contributes directly to the overall meaning: 穷 (poor), 困 (hard-pressed), 潦 (disheveled), and 倒 (collapsed). This conjunction intensifies the description to convey a state of extreme poverty and personal ruin.