Financial analysis of Turkish hospitality and food & beverage industries at Borsa Istanbul

Organizations have been evaluating their financial situations with various financial analysis methods over the years. The best appropriate method of analysis has changed according to industry, time etc. Ratio analysis has been sizably used to evaluate financial relationships. There are many kinds of ratios and the usage of ratios depends on the situation. Ratios are calculated by the data from balance sheets, income statements and cash flow statements. The Numbers application on Macbook is used to calculate ratios and SPSS panel data application is used to analyze ratios. The aim of the study is to measure the association between liquidity, solvency, efficiency and profitability. With the respect of the aim of the study, the kinds of financial analysis and specifically ratio analysis and their kinds have been explained. The background of the financial analysis is discussed and related researches are shown within the study. In order to evaluate arguments; current ratio, accounts receivable turnover ratio, inventory turnover, total asset turnover, debt ratio, equity ratio, debt to equity ratio, profit margin ratio, gross margin, return on total assets and cash flow on total assets are calculated for thirty hospitality and food&beverage firms listed at Borsa İstanbul between the years 2012 and 2017.According to the results, for the hospitality sector, food&beverage sector and both sectors; the independent variables from the models express only 1%, 1% and 6% of the variance of the profitability variable respectively. Simply, no independent variable has a significant effect on profitability. So, in Turkey there is no significant association between the dependent variable and independent variables of the study. Keywords: financial analysis, ratio analysis, panel data