The Relationship between Financial Ratios and Stock Prices of The Listed Health Services Sector Companies on the Stock Exchange of Thailand
Keywords:
Financial Ratios, Stock Prices, Health Services sector Firms, the Stock Exchange of ThailandAbstract
The purpose of this research is to study the relationship between financial ratios and stock prices of the listed health services sector companies on the Stock Exchange of Thailand, totally 11 companies. Eight financial ratios and stock price of the listed companies was collected from database of the Stock Exchange of Thailand by quarterly of year 2011 to 2021. The data was analyzed by the statistical software in term of Pearson Correlation Coefficient. The result found that the positive correlation between the liquidity ratio, efficiency ratio, and profitability ratios and the stock prices, however leverage ratio has negatively correlated with the stock prices at 99 percent confidence level. It confirms the relationship between the financial ratio and the price of listed companies’ securities on the Stock Exchange of Thailand. Therefore, investors should use financial ratio data to predict the price of securities in investment decisions.
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