Confirm that the company does not raise additional loans to meet its commitments on previous borrowings. Look at the coverage ratios such as Interest coverage ratio and Debt Service Coverage Ratio which indicate the adequacy of proceeds from the operations of the firm and the claims of outsiders.
If you want to learn more check out these resources:
- How to Start Saving Now: The College Graduate's Guide to Retirement
- The Neatest Little Guide to Stock Market Investing