If Retained Earnings to Total Assets increases over time:
An increasing Retained Earnings to Total Assets ratio is usually a positive sign, showing the company is more able to continually retain more earnings.
If Retained Earnings to Total Assets decreases over time:
A decreasing Retained Earnings to Total Assets ratio is usually a negative sign, showing the company is less able to continually retain more earnings.
If Retained Earnings to Total Assets stays the same over time:
An unchanged Retained Earnings to Total Assets ratio may indicate the company''s ability to continually retain more earnings has remained the same.