Financial and Legal Positions

• long-term borrowing capacities and ability to secure equity financing

• short-term borrowing capacities

• sources of financing, including duration and strength of the relationship

• sales margin, return on assets, and return on equity

• profitability of key divisions, products, or services

• projections of financial position, margins and profitability over next two to five years

• comparison of profitability, cash flow, and other key ratios with those of major competitors

• major liabilities

• regulation of company/unit

• major lawsuits, regulatory enforcement, and rule-making actions: probable impacts on unit