The using of ratio analysis on annual reports: A survey of ISE (İstanbul Stock Exchange) cement companies

viABSTRACTTHE USING OF RATIO ANALYSIS ON ANUAL REPORTS: A SURVEY OF ISE(ISTANBUL STOCK EXCHANGE) CEMENT COMPANIESBilge Leyli DEM RELDepartment of Business AdministrationAfyonkarahisar Kocatepe University, The Institute of Social SciencesAugust 2006Advisor: Assist Prof. Dr. Ali Rıza KAYMAZIn this study firms? annual reports and financial ratios, by grouping them, coveringthe results of their annual activities are investigated in detail. The aim of the study is toexplore practice of financial ratio analysis in the framework of annual reports. In the study,annual reports of cement sector firms quoted in ISE for 2002, 2003, and 2004 are used. Inthe first chapter, in the frame work of GAAP (Generally Accepted Accounting Principles),basic financial tables and annual reports are explained. In the second chapter, discussingbasic financial ratios in groups, the principles of disclosure and transparency are mentionedthat entail opening annual reports which gaining importance day by day to public opinion .In the third chapter, the function of financial ratio analysis on annual reports of the cementsector firms quoted in ISE (Istanbul Stock Exchange) is examined. On the basis of ourviiinvestigation, it is found that firms use financial ratio analysis in their annual reports, butthe level of current usage is not adequate in order to reach appropriate assessment about thepast and to make plans for the future.