Impact of Debt Levels on Savings Cooperatives' Profitability
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Abstract
This study aimed to examine the relationship between the debt ratio and profitability of savings cooperatives, using a sample of 1,115 savings cooperatives operating over a 9-year period (2012-2020). The analysis was conducted using descriptive statistics and least squares regression equations, considering the ratio of total debt to total assets, short-term debt to total assets, and long-term debt to total assets. The results of the study found that: 1) the ratio of total debt and long-term debt has a significant negative relationship with profitability; 2) short-term debt has a significant positive relationship with profitability, indicating that short-term debt can enhance the profit-seeking ability of savings cooperatives in Thailand.
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