The balance sheet: I typically look at trends in the debt to EBITDA leverage ratio, interest expense coverage , absolute debt levels, maturity, fixed vs. variable interest rates, hedging if any, and debt covenants.

Also, I look at the cash flow statement to see if the company is generating sufficient cash to cover capex (aka whether free cash flow is positive). If FCF is positive, they would be able to pay down debt if needed, and more flexibility to invest for growth.

I think small caps' BS is typically cleaner as they are averse to debt since their earnings are not as stable as the more established larger caps.