Relationship Between Operating Efficiency Ratio and Return on Investment of Companies Listed on the Stock Exchange of Thailand

Abstract

This article aimed to study the relationship between operating efficiency ratio and return on investment of companies listed on the Stock Exchange of Thailand. The research model is quantitative research, the research area is a company listed on the Stock Exchange of Thailand. The sample group consisted of 1,323 companies listed on the Stock Exchange of Thailand from 2018 to 2020, using a specific selection method. There is the annual registration statement. Data were analyzed by using basic statistics, financial ratios, and multiple linear regression analysis.

Variables that positively correlate with return on investment. The statistically significant level at 0.01 was the positive receivable turnover rate of 3.559, which means that if the trade receivable turnover ratio increases by 1 unit, the return on investment will increase by 3.559 units. Statistically significant at 0.01 level was a positive inventory turnover rate of 0.936, which means If the inventory turnover rate increases by 1 unit, the return on investment will increase by 0.936 units, a variable that positively correlates with the return on investment. A statistically significant level at 0.01 is the trade payable turnover ratio. Positive 0.571 means that if the trade payable turnover rate increases by 1 unit, the return on investment will increase by 0.571 units.

This research guides decision-making by measuring the relationship between operational efficiency ratio and return on investment in securities using data from the Stock Exchange of Thailand, which can be used as information to support those who are making investment decisions.