While it is always sensible to investigate a company's debt, in this case Weltrend Semiconductor has NT$767.5m in net cash and a decent-looking balance sheet. And it impressed us with free cash flow of NT$581m, being 313% of its EBIT. So is Weltrend Semiconductor's debt a risk? It doesn't seem so to us. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For example Weltrend Semiconductor has 3 warning signs (and 1 which is significant) we think you should know about.