Cash Flow and Financial Ratios on the Performance of Companies Listed on the Stock Exchange of Thailand

Abstract

          This research aims to: 1) examine the impact of cash flow on financial performance of companies listed on the Stock Exchange of Thailand (SET), and 2) investigate the effects of financial ratios on the financial performance of companies listed on the SET. The study uses secondary data collected from financial statements and annual reports of SET-listed companies during the period 2020-2022, focusing on 74 companies, totaling 209 observations. The research applies statistical methods, including descriptive statistics, correlation analysis, and multiple regression analysis, to explore the relationships among variables.

The study found that effective cash flow management can reduce liquidity risk and improve business stability. Furthermore, maintaining strong financial ratios enhances profitability and long-term sustainability. Companies that effectively manage their cash flow and financial ratios can better respond to financial needs, leading to improved operational performance. The findings contribute to a better understanding of how cash flow and financial ratios can be used as decision-making tools for executives and investors.