Comparison of financial failure prediction models: An application of BIST in the manufacturing sector

In the face of rapidly developing and changing technology, it is becoming more difficult for enterprises to continue their activities due to the influence of various Sunday conditions. The fact that enterprises do not suffer losses or can continue their activities with minimal losses in possible crises and possible recessions is gradually increasing the importance of their financial structures. In an increasingly competitive environment, determining financial failure in advance is important for the future of enterprises. It helps businesses maintain their strength in a competitive environment and focus on their long-term goals. In this study, it is aimed to identify the reasons why businesses are experiencing financial difficulties and to take precautions with the right strategies. In the study, the financial failure of the enterprises trading shares in the BIST Food and Beverage sector was examined using the annual financial data for the period 2015-2022 using the Altman Z' Score, Fulmer H Score and Springate S Score methods. As a result of the study, the financial failure prediction rates of the models were determined. According to the results of the prediction rates of a total of 200 data; Altman Z" Score financial failure rate is 13%, Springate S score financial failure rate is 44%, Fulmer H score financial failure prediction rate is 6% over 170 data by extracting 30 unaccountable data. In addition, due to the emergence of the Covid-19 pandemic during the period under review, this period was considered separately and it was concluded that the Covid-19 pandemic had a positive impact on the BIST Food and Beverage sector.