A decreasing Capital Ratio is usually a positive sign, as this shows the company may have a higher proportion of fixed assets when compared to its total equity and debt. The company may have paid down some debt, or possibly bought back some of its stock while maintaining its amount of fixed assets.
An increasing ratio may indicate the company has taken on more debt or completed another round of securing equity, but less of a proportion was spent on fixed assets. The company may have also sold some of its fixed assets, causing the ratio to skew upwards.
