The power of finances. Examining financial performance, market trends, and implications for the survival of energy companies in Türkiye

The energy markets play a pivotal role in driving the overall performance of economies, with the power sector standing as a substantial contributor to national economies. Understanding the financial standing of the power sector is imperative to gauge its impact on the economy and comprehend its current status. Failure in energy companies not only results in economic losses but also affects national economies and societal stability. This study aims to comprehensively analyze the financial strengths and weaknesses of the sector to facilitate targeted policies and strategies aimed at ensuring its stability and long-term sustainability. The discussion is structured into discrete sections, with a thorough examination of the energy sector, an analysis of financial ratios, an exploration of the factors impacting firm survival, and a comprehensive empirical OLS-Logit-Probit econometric model focused on electricity-generating companies in Türkiye. By conducting an in-depth analysis of financial indicators such as long-term debt, return on equity (ROE), net profit margin, asset utilization ratios, liquidity, and other measurements, the findings hold significance not only for the Turkish electricity market but also offer valuable insights and implications for energy markets globally, aiding stakeholders, policymakers, investors, and academic discourse in optimizing strategies and enhancing resilience across diverse energy markets.