Determination of the impacts 2001 crisis on the manufacturing industry by the ration analysis

Financial crises affect all decision makers both economically and socially. Thisstudy aims at measuring how 2001 financial crisis in Turkey affected manufacturingfirms by investigating their financial tables. For the firms in ISE for which data areavailable, we studied balance sheets and income tables for the period 1997-2002 byusing ratio analysis in order to calculate measures revealing the effects of the crisis. Onthe basis of the analysis on 72 manufacturing firms in 7 sectors, we conclude that duringthe crisis periods firms? short-term debt burden increases, capital?s share in totalresources declines, and therefore debts? share in recourses rises. In general, receivableand stock turnover rates increase, while total profitability of capital and total resourcesgoes down in the crisis year and the following years when compared with the pre-crisisperiod. On the other hand, liquidity rates decline in the crisis year, but reach to pre-crisis levels after the crisis.