Chose D as long term collaboration should take into account financial viability of suppliers.

Why not D? Operational performance can improve as part of ongoing supplier development but poor financial strength poses bankruptcy risk as also supply reliability challenges due to working capital issues & cost competitiveness

A long term relationship is a strategic relationship, while selecting a supplier there are umpteen factors that are taken into consideration such as the financial position of the supplier, their work culture, their capacity to cater to your requirement and their ability to adapt to any upgradation requirements for the same, the technology they use and coherence of the same to your organisation, R & D activities that are relevant etc. Even though financial position of the company is important, this factor is considered in the initial stages of the selection process (RFX) and it is always the capacity and readiness to cater to your organisational requirement for a long term that counts here.

A company can have good performance but a bad cost structure which drives them into bankruptcy. A financial statement is a better indicator for a long-term collaboration

Why no D? The financial statement of an organization is pretty important in the long term, isn't it?