Liquidity and Profitability: An Investigation of Firm Value and Financial Performance of Thai Listed Firms During COVID-19 Pandemic
คำสำคัญ:
Profitability, Liquidity, Cash conversion cycle, Tobin’s Q, Return on equity, Return on assets, COVID-19 pandemicบทคัดย่อ
The paper investigated the relationship between liquidity and profitability of the top 100 Thai companies listed in the Stock Exchange of Thailand during COVID-19 pandemic. About 18% of firms can maintain both higher profitability and higher liquidity with firms in Electronic Components sector performed the best due to the strong nationwide and worldwide customer demand and tight supply in key electronic components from COVID-19 pandemic. The statistical testing of the differences in the means of significant variables among firms classified by profitability and liquidity showed that firms that can achieve profitability-liquidity dual goals have higher sales growth, shorter cash conversion cycle and average inventory period, and higher return on equity compared to firms in other groups. The results from the multiple regression models showed that more profitable firms had higher return on equity and return on assets. Firms with higher profitability and liquidity had lower return on assets supporting the explanation that there is a trade-off between dual goals.
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