Financial performance analysis of companies listed in BIST metal main index with the help of multi criteria decision making methods

Today, with the changing markets and increasing competitive environment, the need for financial performance analysis has increased. For companies and investors to determine the right strategies to adapt to changing conditions, to survive and to sustain competition depends on the effectiveness of their financial analysis. The aim of this study is to analyze the performances of 17 enterprises operating in the Iron and Steel industry, one of the leading industries of the country, whose shares are traded in Borsa Istanbul (BIST) between the years 2015-2019, with the help of multi-criteria decision-making methods, and to determine the competitiveness and performance of the companies throughout the process to show what kind of change has occurred. In this study, Moora, Waspas and Promethee multi-criteria decision making methods were used to measure the financial performances of 17 enterprises included in the Base Metal Index (XMANA) between the years 2015-2019, afterwards with the aim of analyzing this three multi-criteria decision making methods together, the Borda count method was used. In this practice, financial performance ranking was made with the help of Moora, Waspas and Promethee methods by using 12 financial ratios (current ratio, acid test ratio, inventories/total assets, equity/total assets, cash ratio, debt ratio, financial leverage ratio, return on equity, inventory turnover, receivables turnover, net working capital turnover and net profit margin) that were converted to positive with the Z-Score method and weighted with the Critic method as criteria. Then, the results obtained according to the three methods were brought together with the Borda Count method to enable financial performance evaluation on a single score. As a result of the practice, the company that showed the most successful performance during the five-year period was Ereğli Demir Çelik company, and the most unsuccessful company was Özbal Çelik Boru. In general, there appeared to be a fundamental stability, albeit with minor fluctuations.