Effects of Working Capital Management on Profitability of Listed Companies in The Stock Exchange of Thailand : Resources Industry Group

Abstract

The objectives of this paper are to study the effects of working capital management on profitability of listed companies in the Stock Exchange of Thailand, focusing on Resource Industry Group. The data of this study is derived from financial statements and annual reports collected between 1 January 2016 – 31 December 2020 from 55 company listed in Resource Industry Group of the Stock Exchange of Thailand. The data used in the analysis, such as the data in the financial statements to be analyzed by using 8 financial ratio formulas. The data is collected every New Year’s Eve. Data was collected, 1,375 independent variables and 825 dependent variables were collected and used from the sample group. The analytical method employed for this study is the descriptive statistics composing of the use of maximum, minimum, mean, and standard deviation as well as inferential statistics such as Multiple Regression Analysis. The result of the study shows that the duration of collection from debtors have a positive effect on net profit margin, but it has no positive effects on the return on total assets and the rate of return on equity. In addition, the duration of inventories keeping, debt repayment period, ratio of sales to current assets, and working capital ratio has no positive effects on net profit margin, return on total assets, and the rate of return on equity.