Page 103 - Anual report STi 2022_eng

Other Components of Shareholder’s Equity (Low Margin equity of the STI Group, which As at December 31,
from Business Combination Under Common Control) 2021 - 2022, has such a ratio of 0.39 and 0.37 times,

In 2016, STI acquired control of Stonehenge Company respectively, where the STI Group has a ratio of decreased
Limited ("STH") by purchasing 99.99 percent of the ordinary interest-bearing debt to equity, this reflects the ability to
shares of that Company from the same group of shareholders. manage and the strength of the financial position of the STI

This is considered a business combination under common Group.
control (a business combination of entities under common Liquidity
control). The STI Group recorded the discount from the As at December 31, 2021 - 2022, the STI Group has a
business combination under common control in the quick ratio of 0.43 times and 0.56 times, respectively.

shareholders' equity of the STI Group as at December 31, The STI Group had an increase in liquidity ratio as at December
2016, in the amount of 2.87 million baht from the difference 31, 2022, mainly due to an increase in cash and cash

between the investment in STH in the amount of 24.25 equivalents and an increase in trade receivables this year.
million baht and the book value of STH on the date of
purchase of shares, amounting to 21.38 million baht. In addition, if considering the cash cycle (cash cycle) of
the STI Group as at December 31, 2021 - 2022, the STI Group
Return on Equity (ROE) had an average collection period of 52.92 days and 58.44

The STI Group has a return on equity in 2021 - 2022, days, respectively. While the average repayment period was
accounting for 19.14 percent and 17.46 percent, respectively, 33.55 days and 49.23 days, respectively, or the cash cycle

where the STI Group has maintained a consistently high ROE was 19.37 days and 9.21 days, respectively. The STI Group
rate from the previous year. has a lower cash cycle in 2022, mainly due to an increase in

Capital Structure the average payment period and an increase in the average
collection period. The STI Group continues to focus on,
As at December 31, 2021 - 2022, the STI Group had a
debt-to-equity ratio of 1.16 times and 1.07 times, respectively. manage, and monitor the outstanding balance of trade
In addition, if considering the ratio of interest-bearing debt to accounts receivable continuously for good liquidity management
of the business.

Factors or Events That May Significantly Affect the
Financial Position or Operations in the Future (Forward-Looking)
● The global economy tends to slow down, and the
inflation rate is high.

● Global central bank policy interest rate hikes.

● Continuity of the government's investment budget
and infrastructure development plans, such as highways,
railways, airports, and the Eastern Economic Corridor (EEC)
project

● The need to increase residential and commercial
projects

● The need for sustainable and environmentally
friendly construction methods
● The adoption of digital technologies for the construction
industry, such as Building Information Modeling (BIM), the

Internet of Things (IoT), and other advanced technologies

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