The Factors Affecting the Profitability: A Case Study of Electricity Authority’s Saving Cooperative

Abstract

This article examined the financial factors influencing the profitability of Thailand's Electricity Savings Cooperatives by analyzing three firms' observations from 2010 to 2019. The data were analyzed using the CAMELS approach with the multiple linear regression technique. The study found that the higher return on equity led to Electricity Savings Cooperatives increasing their net profit. Therefore, the study discovered that the asset turnover ratio and profitability (return on assets) had a positive and significant relationship. The debt-to-equity ratio, however, had a significant negative impact on the profitability ratio. Therefore, the study found a negligible relationship between business growth rate and the profitability of Electricity Savings Cooperatives in Thailand. The study concludes that Saccos will benefit from this study by being inspired to employ asset and liability management strategies that could lead to a stable financial situation for their companies.