Study the relationship between financial ratios and profitability of companies listed on the Stock Exchange of Thailand.

Abstract

         This article aims to 1) study financial ratios, 2) study profitability, and 3) study financial ratios that are related to profitability of companies listed on the Stock Exchange of Thailand. The sample consists of 144 samples. Purposive sampling was used. The research instruments are secondary data, including financial statements, annual reports, and Form 56-1 displayed on the Stock Exchange of Thailand website. The statistics used in this study are mean, standard deviation, maximum, minimum, and Pearson product moment correlation coefficient analysis.

         Major Findings found that 1) Debt ratio has a mean of 2.5471. Current ratio has a mean of 1.61, Quick ratio has a mean of 0.39, Debt to equity ratio has a mean of 0.85, 2) Return on assets has a mean of 6.71, Return on equity has a mean of 10.51, Net profit margin has a mean of 5.49, 3) Debt ratio is related to return on assets, return on equity and net profit margin, and has a relationship in the opposite direction. Current ratio It is related to the rate of return on equity and net profit margin and has a relationship in the same direction. The quick ratio is related to the rate of return on equity and net profit margin and has a relationship in the same direction. And the debt to equity ratio is related to the rate of return on assets and has a relationship with the rate of return on equity and net profit margin and has a relationship in the opposite direction.