Liquidity and Debt Management Ability Affect Profitability and Returns of Companies Listed in the Stock Exchange of Thailand Resource Industry Group Energy and Utilities Sector

Abstract

This research aims to:  1) Study the liquidity ratios, including the current ratio, quick ratio, and cash ratio, and their impact on profitability, including asset turnover ratio, equity return ratio, and net profit margin. 2) Study the debt management capabilities, including the debt-to-asset ratio and debt-to-equity ratio, and their impact on profitability, including asset turnover ratio, equity return ratio, and net profit margin. 3) Study the management of liquidity ratios, including the current ratio, quick ratio, and cash ratio, and their impact on returns, including stock price and dividend yield. 4) Study the debt management capabilities, including the debt-to-asset ratio and debt-to-equity ratio, and their impact on returns, including stock price and dividend yield. The population used in this research consists of 67 registered companies in the Energy and Utilities sector of the Stock Exchange of Thailand. The research methodology employed purposive sampling. The statistical techniques used for analysis include mean, standard deviation, maximum value, minimum value, correlation coefficient analysis, and multiple regression analysis.

Research findings revealed that the quick ratio (QR_t) indicates that companies registered in the Energy and Utilities sector of the Stock Exchange of Thailand have the potential to maintain efficient liquidity ratios. As for hypothesis testing, it was found that effective liquidity management and debt management positively impact the profitability of the Energy and Utilities sector. Additionally, effective liquidity management and debt management have a positive influence on the returns of the Energy and Utilities sector. These results are statistically significant at a level of 0.05.