The Study of Liquidity Ratio, Assets Management Ratios and Affordability Ratio that Affect The Return on Asset in Stock Exchange of Thailand

Abstract

The purpose of this research was to study the relationship between financial ratios. Liquidity ratio, Assets Management Ratios Affordability Ratio and Return on assets(ROA) of companies in the medical business group listed on the Stock Exchange of Thailand. The numerical data are from the accounting entries in the financial statements for the past 5 years, which is from the year 2561 to 2565 of 22 companies. Test the hypothesis The researcher used a statistical program to process the data for descriptive statistical analysis. Coefficient analysis and regression equation analysis  The independent variables studied include: Liquidity ratios viz Current Ratio, Receivables Turnover Ratio, Average Collection Period, Inventory Turnover Ratio Asset Management Ratio viz Fixed Asset Turnover ratio, Total Asset Turnover ratio Leverage Ratio viz Dept to Equity Ratio, Time Interest Earned Ratio The dependent variable is the rate of return on assets. and the control variable is Size of the business

          The results of the study found that Liquidity ratios include: Inventory turnover rate and average sales period are significantly and negatively related to the return on assets. If the inventory turnover rate or average sales period increases, it will result in the rate of return on assets decreased While the asset management ability ratio that is related to the rate of return on assets is the total asset turnover rate. It has a significant positive effect on the rate of return on assets. If the total asset turnover rate increases, it will result in an increase in the rate of return on assets.