If Depreciation to Fixed Assets increases over time:
An increasing Depreciation to Fixed Assets ratio is generally a positive sign, and may indicate the company has purchased new fixed assets and is improving its operations.
If Depreciation to Fixed Assets decreases over time:
A decreasing Depreciation to Fixed Assets ratio is generally a negative sign, and may indicate the company''s operational improvement plans have stalled.
If Depreciation to Fixed Assets stays the same over time:
An unchanged Depreciation to Fixed Assets ratio indicates the company''s operational improvement plans have not changed.