Business Analysis Using Trend Analysis and Financial Ratio Analysis of the Automotive Industry: A Case Study of Stanley Electric Public Company Limited

Abstract

This study aims to analyze business performance in the automotive industry through trend analysis and financial ratio analysis. The objectives of this study are to examine trends and analyze financial ratio in four key areas including Liquidity Ratio, Efficiency Ratio, Profitability Ratio and Leverage Ratio. The study focuses on a case study of Stanley Electric Public Company Limited, a large company in the automotive industry, which provides comprehensive financial data relevant to Thailand’s automotive sector. The data used in this study are derived from the company’s financial statements for the years 2022 to 2024. The results of the study are as follows. First, in the trend analysis, with 2022 as the base year, it was found that in 2023 and 2024, cash, accounts receivable, inventory, noncurrent assets, and current liabilities showed a decreasing trend compared to 2022, respectively. Second, in the financial ratio analysis across four dimensions including Liquidity Ratio, Efficiency Ratio, Profitability Ratio and Leverage Ratio, it was found that the company performed well overall. In terms of liquidity, the current ratio was greater than 1, indicating that the company had sufficient current assets to cover its current liabilities. Regarding operational efficiency, the accounts receivable turnover ratio was greater than 1, demonstrating that Stanley Electric Public Company Limited has effective receivables management. In terms of profitability, it was found that in 2024, the gross profit margin was the highest compared to 2022 and 2023, accounting for 18.41 percent of total sales. Finally, in terms of solvency, the debt-to-equity ratio in 2023 to 2024 showed a decreasing trend, indicating that the company has been improving its financial management, with a declining level of debt relative to equity.