Effects on the financial statements of the business in the economic crisis periods: A study in the Turkey's textile and clothing sector's firms traded at BIST

Businesses are the main actors of the economy in the market economy system. Businesses face various risks while operating. One of these risks is the economic crises. The effects of economic crises on businesses are multidimensional. The financial and operational status of the enterprises can be analyzed by using financial analysis technics and the financial statements of the enterprises. It is possible to understand by analyzing financial statements howI economic crises affect businesses and in what ways. Significant results can be achieved by examining the effects in the financial statements, especially in the past economic crisis periods. In this context, in this study, in order to understand how businesses are affected by economic crises, how the economic crises experienced in 2001 and 2008 affected the financial statements of businesses. In the study, the financial statements of 19 textile and ready-to-wear companies traded on Borsa Istanbul were analyzed. As a result of the study, it was determined that the liquidity, debt solvency, activity efficiency periods, financial structure status and sustainable profitability level of the enterprises were adversely affected by the economic crises. Therefore, firms should always keep their financial structures strong against risks. In this process, firms should be made more resilient with the decisions and regulations to be made by public authorities.