การวิเคราะห์ทางการเงินของอุตสาหกรรมผลิตยางรถยนต์ในประเทศไทย / สรศักดิ์ นันทมนตรี = A financial analysis of tyre industry in Thailand / Sorasuk Nantamontry
The Thesis studies the financial aspects of tyre industry in Thailand. The source of data is mainly the financial statements collected from the Department of Commercial Registration, the Ministry of Commerce during 1976 to 1979. The purposes of the study were on the firm’s and the industry’s financial status, the operation, sources and uses of funds. In addition, the general structures of the industry and the role of the government to this industry such as the history of the industry, production, and marketing were studied. The study revealed that the tyre industry produced goods mainly for domestic demand as well as import substitution and exportation by importing necessary raw material from abroad. This industry was granted promotion by the government until June, 1962. Only four firms were granted promotion and one of them was repealed in 1977. The other firms, exhibited after the four firms above, were not granted promotion by the government. The government granted and protected the industry, by charging a low rate of custom duty for imported raw materials and business tax, and through tariff for imported tyre. But the tariff is not high enough to limit the tyre from aboard. Besides the government should encourage domestic firms to produce the important raw materials locally in stead of importing from aboard. It will decrease the cost of production and will be able to compete aboard. Hence, it will save the foreign exchange from importing raw material and reduce the deficit balance of trade. The financial analysis aspect of the industry was studied by comparing the important financial ratios of each firm in the industry and with the industry as a whole. The analysis was concentrated on four aspects: liquidity, leverage, profitability, and efficiency. In terms of liquidity, Thai Bridgestone Co., Ltd., was the best, and followed by Firestone (Thailand) Co., Ltd., and Goodyear (Thailand) Co., Ltd., respectively. In terms of leverage, Thai Bridgestone Co., Ltd., had the lowest risk and followed by Firestone (Thailand) Co., Ltd., and Goodyear Thailand) Co., Ltd., respectively. In terms of profitability, Firestone (Thailand) Co., Ltd., was the most profitable firm and followed by ThaiBridgestone Co., ltd., and Goodyear (Thailand)Co., Ltd., respectively. In terms of efficiency, Firestore (Thailand) Co., Ltd., was the most efficient firm and followed by Thai Bridgestone Co., Ltd., and Goodyear (Thailand) Co., Ltd., respectively. For the whole industry the average financial ratios of the industry were satisfied and rather attractive to the investors. Morever, trend analysis of financial ratios was studied in order to compare the movement of each firm’s financial ratios with the whole industry during 1976 to 1979. Fund management of the industry was studied by analyzing the capital structure and sources and uses of funds statement for each firm and the whole industry.
The analysis indicated that: The capital structure of Firestone (Thailand) Co., Ltd., was composed of equity averaging 57% and of short-term liability averaging 43%. The capital structure of Thai Bridgestone Co., Ltd., was composed of equity averaging 80% and of short-term liability averaging 20%. Except in 1976-1977 they were long-term liability averaging 1.5 % each year for machinery installment payment. The capital structure of Goodyear (Thailand) Co., Ltd., was mainly composed of short-term Liability averaging 63% in the form of loans overdraft from banks and loans from subsidiary companies. For the capital structure of the industry was mostly composed of equity averaging 62% and of short-term liability averaging 38%.For the financing method of the industry, this study indicated that the financing method was not suitable in 1977-1978 because long-term loans were used to finance temporary assets. This brought about high degree of liquidity and low degree of risk and the return was lower because of cost of long-term loan was high while the return of temporary asset was usually low. In 1979 the short-term loans were used to finance permanent assets. This brought about low degree of liquidity and high degree of risk since the maturity of short-term loans was less than a year while the industry might not be able to convert permanent assets into cash on time. However, the analysis indicated that rate of return of tyre industry in Thailand was declining but it was a satisfactory rate. The cost of production increased steadily, but the price could not be raised equal to the increasing cost since it was controlled by the government. Besides the study indicated that the three firms have been prepairing to increase their productivity for the increasing demand in the future. At present the capacity of production is almostly full. When combining the capacity of the granted with non-granted promotion firms revealed that the quantity of supply and the quantity of demand is almost equal. From figure 11, the number of cars registered besides passenger cars had the tendency to increase during the period of study. The tyre manufacturers should concentrate on producing more tyres for trucks and other cars.
