Evaluation of financial performance by multi-criteria decision making: A study on publicity held corporations

One of the most important responsibilities of business management is to regularly analyze the financial performance of the enterprise periodically. In order to make healthy decisions and maintain the audit functions correctly, it depends on analyzing the financial performance. The purpose of analyzing financial performance is to send information about the financial status of the company to the owners, shareholders or those who plan to invest. In case of a shortage of cash due to different reasons, companies may decide to go public if they are registered on the stock exchange. At this point, public offering is a rational decision that keeps the companies one step further. The concept of public offering accelerates the process of institutionalization and plays an important role in increasing the liquidity of credit in financial institutions and banks. In addition, public offering has benefits such as providing permanent funds and distributing risks. The aim of this study is to determine the financial performance of 48 companies, which completed its institutionalization process and listed in Istanbul Stock Exchange Market, by using PROMETHEE, COPRAS and TOPSIS methods among the Multi-Criteria Decision-Making Methods. The study takes years from 2013 to 2017 as its basis and presents in the from of charts the results of Multı-Criteria Decision-Making Method for the year 2017 as being the final year focused in this study. In the analysis section of the study, firstly, a ratio analysis is made by making use of financial statements of 48 companies which are the subject of this Research. Then, a financial standing analysis is performed by using PROMETHEE, COPRAS and TOPSIS methods among the Multı Criteria Decision-Making Methods and performances of each company are listed mathematically. At the end of the study, three different results are determined for each analysis. It is observed that the results are close to each other. While Garanti Yatırım Ortaklığı A.Ş. is ranked second in both PROMETHEE and COPRAS methods, it is ranked first in TOPSIS method. In the same way, Akmerkez Gayrimenkul Yatırım Ortaklığı A.Ş. is ranked first according to PROMETHEE method, while it is ranked third in COPRAS method. Mistral Gayrimenkul Yatırım Ortaklığı A.Ş. is concluded to have ranked third both PROMETHEE and COPRAS methods.