The Impact of Efficiency Ratios on Asset Management on the Leverage Ratios and the Profitability Ratiosof the Industrial Goods Business Groups Listed onthe Market for Alternative Investment (Mai) of Thailand

Abstract

          This research aims to study the impact of asset management efficiency ratios on financial structure ratios and the impact of financial structure ratios on profitability ratios of industrial product businesses listed on the Market for Alternative Investment (MAI) in Thailand. The population used in this study consists of 209 companies listed on the MAI in Thailand. The sample group includes 41 industrial product businesses listed on the MAI in Thailand. Financial ratio analysis was used as a tool for data analysis. The statistics used in this research include descriptive statistics, multiple regression analysis, and Pearson product-moment correlation coefficient analysis to test the hypotheses.
          The research findings indicate that asset management efficiency ratios affect financial structure ratios, including the debt-to-equity ratio, interest coverage ratio, debt-to-asset ratio, and gross profit margin. Similarly, operating profit margin, net profit margin, return on assets, and return on equity are impacted by financial structure ratios affecting profitability ratios. Financial ratios that indicate operational efficiency are related to profitability both positively and negatively, reflecting the profitability, strengths, weaknesses, and financial risks of the business.