The analysis of the relationship between the Financial Ratios and the Return on Investment in Securities of the Energy and Utilities Business Group in the Stock Exchange of Thailand

Abstract

          The purpose of this research attempts to find a relationship between the financial ratios and the return on investment in securities of the listed energy and utilities business group companies on the Stock Exchange of Thailand. It is quantitative research. Using secondary data, financial data is collected from the annual report of the energy and utility sector listed on the Stock Exchange of Thailand during the year 2016-2020, 5 years, totaling 20 companies, and 100 datasets. The statistics used in the data analysis are descriptive statistics and inferential statistics in Pearson's correlation coefficient analysis and multiple linear regression analysis to find the relationship between the financial ratio and the return on investment in securities at the significance level of 0.05. And this study aims to examine 9 ratios: Working Capital Ratio (CR), Debt-to-Equity (D/E) ratio, Debt-to-Asset Ratio (DR), Net Profit Margin (NPM), Return on Equity (ROE), Return on Assets (ROA), Total Asset Turnover (TAT), and Account Receivable Turnover Ratio (ART) that affect the Return on Investment in securities (ROI)
         The results show that there are statistically significant impacts from 3 financial ratios: Return on Equity (ROE), Account Receivable Turnover Ratio (ART) with a statistically significant correlation of 0.05 in the same direction, and Total Asset Turnover (TAT) with a statistically significant correlation of 0.05 in the opposite direction to the rate of return on investment in those securities.