Financial analysis of oil business in Azerbaijan & Turkey: TÜPRAS and SOCAR application

Nowadays, the value of oil is increasing, having an important impact on economy in Turkey and Azerbaijan. It has become necessary to apply the elements of the financial analysis of the oil business. The fact that the exporting countries make oil their main factor has increased the importance of oil not only economically but also politically. In the study of the history of oil, the development process in Turkey and Azerbaijan were investigated. Since TUPRAŞ and SOCAR enterprises will be subject to financial analysis, information is given about the definition, importance, types of analysis and techniques used in financial analysis. Liquidity, financial structure, activity and profitability analyzes of the financial statements of TÜPRAŞ and SOCAR have been performed with the ratio analysis method. In this study, content analysis was conducted using quantitative research method. The financial data, financial structure, productivity, short-term debt solvency and profitability of the oil enterprises in the 2015-2017 financial statements are analyzed and interpreted. As a result of the study, it was revealed that TÜPRAŞ's profitability, productivity and equity status could be normal but better, and that SOCAR's profitability was low due to low productivity and own resources, but it started to increase in the following years. Keywords: Petroleum, Financial Statements, Financial Analysis Technıques, TÜPRAŞ, SOCAR