​Assets=Liabilities+Shareholder Equity​ These balance sheet categories may include items that would not normally be considered debt or equity in the traditional sense of a loan or an asset. Because the ratio can be distorted by retained earnings or losses, intangible assets, and pension plan adjustments, further research is usually needed to understand to what extent a company relies on debt. To get a clearer picture and facilitate comparisons, analysts and investors will often modify the D/E...