Cash Flow on Stock Return of Listed Companies in The Stock Exchange of Thailand: Service Industry Group

Abstract

Analysis of the cash flow statement to demonstrate the sources and uses of cash in terms of cash flows, operating cash flows, investment cash flows, and cash flows from financing are important components of fundamental securities analysis. However, if the business does not prepare sufficient capital and cash flow plans simultaneously for future expansion, it will often be disadvantageous to competitors who have prepared plans and can capture market share first. Thus, the purpose of this research was to study the relationship between cash flow and liquidity of listed companies in the Stock Exchange of Thailand: service industry group. According to the Securities and Exchange Act, B.E. 2535, quantitative research, data was collected from the annual report statement (Form 56-1) and from the SETSMART database during the year. 2017-2021, a total of 91 companies. The data was analyzed using inferential statistics with a correlation analysis at a significance level of 0.05. The results of the research showed Cash flow from operating activities Cash flows from investing activities and cash flows from financing activities. has a relationship with liquidity, current ratio, debt to equity ratio, and total debt to total assets ratio of correlation in the same direction, and cash flow from financing activities Is correlated with the current ratio in the opposite direction, showing that cash flow is a number that can reflect and monitoring the liquidity of the business, including the ability to pay debt and the ability to expand business or open new projects.