Techniques for analyzing profit quality of listed companies in the stock exchange of ThaiLand the energy and utilities group and the petrochemical and chemical group

Abstract

The objective of this research is to study the techniques of profit quality analysis and the consistency of the profit quality with different profit quality analysis techniques; and to compare profit sustainability between large companies and small companies of the industrial energy and utilities group and the petrochemical and chemical group. The data is collected from financial statements and data entry forms (Form 56-1) from 2012 to 2018. A total of 47 companies are analyzed using descriptive statistics including mean and standard deviation; and inferential statistics including multiple regression analysis and analysis of the average difference between 2 groups The research found that, in the analysis of the profit quality consistency in all 4 methods, there were only 13 companies in the energy and utilities group with consistent quality of profits, accounting for 39.39%; and 20 with inconsistent results, accounting for 60.61%. In the petrochemical and chemical group, there was only 1 company with consistent quality in all 4 methods, representing 7.14%; and 13 companies with inconsistent quality, representing 92.86%. In addition, when comparing the profit sustainability between large companies and small companies, it was found that there was no statistical difference in profit sustainability (sig = 0.305> 0.05). When comparing the profit sustainability between energy and utilities group and the petrochemical and chemical group, it was found that petrochemical and chemical companies had a higher profit sustainability than the energy and utilities group at statistical significance of 0.01 (sig = 0.009 <0.01).