Evaluating financial performance of the food industry firms that registered to İstanbul Stock Exchange (İMKB)and determining factors that effects equity profitability

Investors, before investing in stock markets, should make a throughresearch. Otherwise, they could face significant loses.After analyzing national economy, investors, by doing industry analysis,could identify profitable industries. After identifying productive industries, firmsthat operate in defined industries with good financial performance must beidentified. Because all companies do not have the same performance.Ratio analysis is one of the important techniques to evaluate financialperformance of companies in industries. By ratio analysis, liquidity, levarage,activity and profitability information would be easily obtained. Considering allthose criterias overall performance of a firm would be presented. Hence,investment decision would be made more rationally.In the study, detailed analysis of food industry has been carried out and thedescription of how the ratio analysis has been outlined.In the application section of the study, with ratio analysis financialperformance of fırms in food industry registered to stanbul Stock Exchange havebeen measured. Consequently, firms with highest and lowest performance levelshave been identified and put in a rank order according to measured performancelevels.In summary, fırms operating in food industry with highest financialperformance have been identified and possibility of rational decision of investorsin this industry have been enhanced.