Forecasting financial success based on financial failure models implementation on BIST 50 manufacturing sector

The fact that financial failure is of high importance in the situation of companies and in their future planning has made it inevitable for companies to make predictions of failure and to direct their work according to company situations based on these. In this study, the concepts of financial failure, its causes, and the models used to make these predictions are examined. Two models, Altman and Fulmer models, were applied. The importance of these models is that they have proven themselves and largely succeeded in forecasting techniques. It provides a great deal of information on the future investments or moves of companies and on the confidence of investors, so that they can get loans or loans. The reason why the Altman model, which is one of the techniques used in this study, was preferred is that it played a leading role in the studies of financial failure markets and inspired many other models. The reason why the Fulmer model was chosen is that, besides being an important forecasting model, more ratios were used for the items in the balance sheet used to give information about the company compared to other studies. In this study, an application is made on the manufacturing companies in BIST50 shares, regarding these failure situations, which are estimated using financial failure models. After these companies were applied on the two models, first the 5-year failure status of the company was examined in the light of the data of the last 5 years, and then they were compared with each other in the light of the models.