Financial performance analysis in Borsa Istanbul with ENTROPI-based ARAS and MOORA methods

Ranking companies from best to least good in situations where there are many criteria and alternatives is a decision making problem. In the literature, multi-criteria decision making methods are recommended for solving such problems. A similar problem exists for the performance evaluation of companies. For this purpose, ENTROPY-based ARAS and MOORA methods were used for sector analysis in Borsa Istanbul markets. While the ENTROPI method was used to determine the criterion weights, the ARAS and MOORA methods were used in the performance evaluation of the companies. The advantage of the ARAS method compared to other methods; The utility function values of the alternatives to be used for selection are compared with the optimum value. While evaluating the performance of the decision option, it also considers the proportional similarity of each decision option with respect to the ideal decision option. The advantage of the MOORA method is that it is easier to apply than other methods. It is an ideal method for the solution process of various and complex problems due to the low number of processing steps. The obtained results give measurable values for each decision option, which facilitates the comparison of the decision option. It considers all the interaction between the decision option and the criteria as a whole at the same time, taking into account all the criteria. It uses non-subjective unbiased values. In the research, 13 companies of 15 companies traded in BIST in the paper industry were included, 28 companies of 37 companies in the chemical industry and 18 companies of 22 companies in the stony soil industry were analyzed with the help of 16 financial ratios covering the 2018-2021 period. The reason for this is that the data of the companies in the years 2018-2021 is needed in the study. Some companies entered BIST after 2018. This prevents us from accessing some data of companies. These companies were excluded from all the years of the study because they would adversely affect the result of our study. The data of the study were obtained from the annual income statement and balance sheet published on the official website of the Public Disclosure Platform. The reason for including the years 2018 and 2021 is to compare the financial data of 4 or 5 years in order to determine the accuracy of some financial ratios. When we consider the year 2017, only the last 4 years are included due to the significant decrease in the companies traded in the BIST. According to the findings; The company with the highest financial performance was DOBUR for 2021 according to the ARAS method, and IHGZT for the MOORA method. Again, according to the ARAS method, the best performance was SODSN in the chemical sector in 2021, and SODSN company in the MOORA method. According to the ARAS method, the company with the highest performance in the soil sector in 2021 was BSOKE, and the best performance in the MOORA method was BUCIM. The results of other years are similar to 2021. The findings of other years are included in the conclusion part. At the last stage of the application, the score relationship between ARAS and MOORA methods was examined and a strong positive relationship was found between them. The Spearman correlation value between the two methods was between 0.85 and 0.98.