What aspect of the firm's financial statements do lenders, investors, and labour unions commonly analyze?

Capital structure relationships

Lenders, investors, and labour unions commonly analyze the capital structure relationships of a firm's financial statements. The capital structure refers to the composition of a company's financial resources, including various sources of funds such as equity, long-term debt, and short-term debt. Analyzing the capital structure helps stakeholders understand how the company is financed and the level of financial risk it carries.

Here's why capital structure relationships are essential for these stakeholders:
Lenders: Lenders, particularly long-term lenders, are interested in understanding the capital structure to assess the firm's ability to meet its long-term debt obligations. By analyzing the proportions of equity and long-term debt in the capital structure, lenders can evaluate the company's long-term solvency and determine the risk associated with lending to the firm.
Investors: Investors focus on the capital structure to determine how the firm's capital is allocated between debt and equity. This allocation can significantly impact the company's earnings and risk. 
Labour Unions: Labour unions analyze the capital structure to gauge the firm's financial health and stability. Understanding the composition of the firm's capital helps them evaluate whether the company can afford wage increases and whether the firm's financial position can absorb any additional labor costs.
While aspects like short-term profitability, long-term solvency, and historical cash flow data are crucial factors that stakeholders consider, the capital structure relationships play a fundamental role in shaping a firm's financial risk, profitability, and ability to meet long-term obligations. Therefore, it is a key aspect commonly analyzed by lenders, investors, and labour unions to make informed decisions related to their involvement with the company.