Relationship between profitability and price to earnings ratio and dividend yield of the listed on the Stock Exchange of Thailand

Abstract

This research aims to study the relationship between profitability, which included gross margin, operating margin, net profit margin, return on assets, return on equity, and earnings per share and price to earnings ratio and dividend yield. The data were collected from financial statements and the annual reports of the companies listed on the Stock Exchange of Thailand (SET100). The top three companies selected should yield a maximum registered capital of each business category from the 1st January to the 31st of December during 2012 and 2015. 20 companies were chosen. The statistics used in the data analysis were descriptive and analyzed by arithmetic mean, maximum, minimum, Standard Deviation, and Pearson Correlation Coefficients to describe the characteristics of the collected data. The results of the study revealed that profitability gained from the gross margin, operating margin, net profit margin, return on assets, and return on equity. The earnings per share ratio were related to the price to earnings ratio and dividend yield at the reliability level of 95% and 99%.