The relationship between cash flow profiles and company performance: An application on Fortune 500 companies

One of the fundamental issues of companies in financial terms is to continue their activities in a profitable way. The new trends in international trade, competitiveness in international markets, as well as the economies of states and nations directly affect this aim of the companies. As a result of globalization, due to this competitive environment of companies, Fortune 500, which lists the largest 500 companies, has been published. In the Fortune 500 magazine, companies are ranked according to their respective fiscal years and annual revenues. The aim of this study; Calculating the cash flow rates (Asset Management Ratio and Profitability Efficiency Ratio, Liquidity Ratio, Adequacy Ratio and Investment and Financing Ratio) of the top 50 national and international companies in the Fortune 500 with the model of operations where cash flows are provided and then to examine which cash flow rates have an effect on the successful firm (Model 2) from the Cash Flow Models, and if so, in which direction The importance of working for this purpose: It is to find an answer to the question of what is the importance of a firm's entry into the Successful Firm (Model 2) with the method of activities model provided by cash flows in terms of cash flow rates. For this reason, the Panel Logistic Regression model was used in the study. In the study, the financial statement data of the first 50 national and international companies in the Fortune 500 for the years 2010-2020 were used. Firstly, Cash flow profiles were determined according to the data in the cash flow tables of these companies. From these determined cash flow profiles, Growing Firm (Model 4), Decreasing or Restructuring Firm (Model 3), Fast Growing Young Firm (Model 6) and Successful Firm (Model 2) profiles are grouped. For panel data logistic regression analysis, Successful Firm (Model 2)! Firms entering the Successful Firm (Model 2) take the value 0, while the firms that do not enter the Successful Firm (Model 2) take the value 0. Then, using the cash flow table of each firm, 9 financial cash flow ratio results determined by years were determined. While the Dependent Variable is the Firms Entering the Model2 = Successful Firm (Y (1 or 0)), the independent variables are; Asset Management Ratio (X1), Profitability / Efficiency Ratio (X2), Profitability / Efficiency Ratio (X3), Liquidity Ratio (X4), Liquidity Ratio (X5), Adequacy Ratio (X6), Adequacy Ratio (X7), Adequacy Ratio ( X8) is determined as Investment/Financing Ratio (X9). According to the results of the research; While Asset and Productivity Ratio (X1), Liquidity Ratio (X4), Liquidity Ratio (X5) and Investment and Financing Ratio (X9) were statistically significant for international firms, Profitability Ratio (X6) was statistically significant for national firms. For international companies, While X1, X4, X5 and X9 variables gave statistically significant results at the level of 1% for all coefficient estimators, for national firms, the X6 coefficient gave statistically significant results at the level of 1% for estimators. According to panel regression clogit analysis results, X5, X6 and X9 variables have an effect on the Dependent Variable (Y = Successful Firm (Model 2). A one-unit increase in the variable X5 increases the probability of accepting 1 by 0.07132203. A one-unit increase in the variable X6 increases the probability of accepting 1 by 2.264927 and a one-unit increase in the variable X9 increases the probability of accepting 1 by 0.1594315.