Methods used in measuring financial success: An application in BIST finance sector

The goals of businesses, making profits and sustainability, are becoming more difficult due to increasing competition and free market conditions. While successful businesses continue their existence by adapting to the global competitive environment, those with adaptation problems may face bankruptcy or liquidation. Globalization, technological developments and changes in economic conditions encourage businesses to foresee financial failures. In order to predict financial failure, the study examined the financial performance, profitability ratios and Altman Z-score of twenty companies operating in the factoring, leasing and banking fields in the BIST Finance sector. It has been observed that the state's interest and credit policies, the depreciation of TL along with the volatility in exchange rates in 2018, and the Covid-19 pandemic had an impact on banking, and factoring companies. Appropriate results could not be obtained in Z score analysis, therefore it was concluded that it is difficult to make an evaluation with Z-score in the financial sector.