There are a few red flags that can indicate trouble with your financial statements. You can make adjustments to your business or books to fix them.Rising debt-to-equity ratio. This indicates that the company is absorbing more debt than it can handle. If the debt-to-equity ratio is over 100%, it may be cause for concern.Revenue consistently trending down. If a company has consistent declining revenues over the years, it’s not a good investment. Cost-cutting measures could help offset the downturn.Large “other” expenses on your balance sheet. Small “other” expenses are normal in your income statement. If an “other” item has a high dollar amount, find out what it is and whether it’s likely to recur.