Influential variables on the profitability of health care services listed on the stock exchange of Thailand

Abstract

This article aims to investigate the influence of capital structure, liquidity, asset management efficiency and value of employee performance on profitability, divided into three perspectives: the earnings before interest and taxes margin, the return on assets ratio and the operating cash flow margin of the medical business. This study examines from financial statements and annual reports of 22 companies listed on the Stock Exchange of Thailand, only in the health care services sector during 2020 - 2022.  Descriptive statistics, Pearson correlation analysis, and multiple regression analysis were all used to analyze the data. 

The results reveal that liquidity and capital structure cause a decline in the company's operating cash flow margin. Administrators must thus examine the credit policy for service receivers who use their entitlements to social security and health insurance and the financing policy. The return on assets ratio is raised by asset management efficiency. Therefore, in order to draw clients to use their services, businesses must offer innovative medical tools and technology. The most important thing that health care services business should concentrate on is the value of employee performance. Since it improves the profitability from the three aforementioned viewpoints. Therefore, a health care services business needs to put an emphasis on hiring physicians, nurses, and other staff members with advanced operating abilities, knowledge, and experience if it hopes to succeed.