Financial performance analysis with entropy-based topsis method: An application on Borsa Istanbul Chemicals Petroleum Rubber and Plastic Products industry during the COVID-19 pandemic

COVID-19, which emerged in Wuhan, China in December 2019, has become a pandemic and has affected many economies and sectors by showing a domino effect. In this period, more need for the chemical industry arose as a precaution against the pandemic. As a result of the high demand for products such as pharmaceuticals, surgical masks, disinfectants, hospital supplies and equipment, companies in this sector reported record sales volumes. In this study, the financial performances of the companies operating in the Chemistry Pharmaceuticals Petroleum Rubber and Plastic Products sector traded in Borsa Istanbul were analyzed with the ratio analysis approach. Within the scope of the study, 10 financial ratio criteria were used to obtain from the year-end basic financial statements of 32 enterprises for the 2018, 2019 and 2020 periods when the COVID-19 pandemic was experienced. In the study, "current ratio, acid-test ratio, cash ratio, inventory turnover, receivables turnover, asset turnover, financial leverage ratio, sales profitability, return on equity and return on assets" were considered as criteria in the study. The data obtained was evaluated with Entropy and TOPSIS (Technique for Order Preference by Similarity to Ideal Solution), which are among the multi-criteria decision making (MCDM) methods. The weights of the financial ratios were calculated using the entropy method, and then the relative importance values of the enterprises were calculated with the TOPSIS method and ranked according to the financial performance values of each year. As a result of the analysis, the most important ratio and the most successful business in 2018, 2019 and 2020; cash ratio-Sodyum Sanayii A.Ş., receivables turnover-Bandırma Gubre Fabrikalari A.Ş. and receivables turnover-Bandırma Gubre Fabrikalari A.Ş. occurred as mentioned above. Within the scope of the COVID-19 pandemic, when the chemical enterprises producing for the health sector in the Borsa Istanbul Chemicals Pharmaceuticals, Petroleum, Rubber and Plastic Products sector were examined, it has been observed that there has been a significant increase in the sales and profitability of these enterprises. Seyitler Kimya A.Ş., which was the third most successful business among these companies, especially in 2020 according to the TOPSIS method, had the highest sales and return on assets ratios, the third highest return on equity and also the third lowest debt ratio.