RELATIONSHIP BETWEEN DEBT MANAGEMENT AND PROFITABILITY CASE STUDY OF REAL ESTATE BUSINESS IN NAKHON SAWAN PROVINCE

Abstract

This research aims to 1) study debt management and profitability of real estate businesses in Nakhon Sawan Province, and 2) analyze the relationship between debt management and profitability of real estate businesses in Nakhon Sawan Province. The sample group was 21 companies buying and selling residential real estate in Nakhon Sawan Province. Secondary data were collected from annual financial reports from 2018 to 2022. A total of 105 annual data were analyzed using financial tools and descriptive statistics, including mean, standard deviation, minimum, and maximum, and inferential statistics, including Pearson's correlation coefficient analysis and regression analysis.         

          The study results found that

1. 1. Debt management, including the ratio of total debt to total assets and the ratio of total debt to equity, had an average of 0.47 and - 20, respectively.


2. 2. Profitability, including the ratio of net profit, return on assets, and return on equity, had an average of -385.65, 0.23, and 10.30, respectively.


3. 3. Relationship between debt management and profitability, including:

          3.1 The ratio of total debt to total assets has no relationship with the net profit ratio.

          3.2 The ratio of total debt to total assets has no relationship with the return on equity.

          3.3 The ratio of total debt to total assets has a negative relationship with the return on assets, at a statistical significance level of .01.