The Relationship of Financial Ratios on Stock Prices in the Transport and Logistics Sector in Thailand

Abstract

This study will be investigating the relationship between financial ratios and the price of stocks listed in SET (The Stock Exchange of Thailand) in the Transport and Logistics Sector. Five Financial Ratios are used which are Current Ratio (CR), Total Assets Turnover Ratio (TAT), Debt to Equity Ratio (D/E), Return on Assets Ratio (ROA) and Price per Book Value Ratio (P/BV). Quarterly Data was retrieved from the first quarter of 2008 to the last quarter of 2018. From the twenty-one companies in the Trans & Logistics Sector ten companies fit the criteria, where all their data are available for analysis and these are the ten companies that have been chosen in the study. The Companies are: AOT, ASIMAR, B, BTS, JUTHA, KWC, PSL, THAI, TSTE and TTA. To find the relationship between financial ratios and stock prices multiple regression model was used for the methodology part of the study.