People can have skills (most commonly) or capabilities. It doesn't have to be positive with either word. He has no skill as a fisherman even though he's been doing it for years. It would be generous to call my capabilities in German rudimentary. Skill is typically something more personal. Everybody admires her skill as a cook. (capability would be ok, but not as good) I have the capability to drive myself and six passengers to the picnic. (not skill) Organizations, associations, machines etc. would have capabilities. The firm has the capability to begin production 6 months after the contract is signed. This app has the capability to translate Mandarin into English.

Skill and capability are very similar words but it depends on how you use them. When you say someone has a skill it is more of a compliment then when you say they have capability. "He has skill as a chef" means he can do the work of a chef and that you admire the way he works. "He has capability as a chef" just means that he can do the work, but it doesn't mean that you admire him for how he does the work. The word skill is more personal, and more of a compliment. You wouldn't use it when talking about a machine, for example "this computer has the skills to do complicated mathematics" doesn't sound correct. It's better to say "this computer has the capability to do complicated mathematics".

Both of comments are excellent. I have handled this question. No need to write more. Thanks.