Measuring the effectiveness of financial ratios in human health and social services sector: An empirical analysis based on multi-criteria decision making techniques

This study aims to evaluate the effectiveness of financial ratios in the human health and social services sector. The analysis of the basic financial indicators such as liquidity, profitability, borrowing and operating ratios of the enterprises operating in the sector revealed important findings regarding the financial status of the sector. In the study, the importance levels of liquidity, profitability, borrowing and activity ratios of enterprises operating in the human health and social services sector in Turkey were determined by SD, CRITIC and LOPCOW methods. In other words, the weights of financial ratios were found. In order to combine the weights obtained by the three methods into a single ranking, Borda counting method was used and the final ranking was created. According to the findings; acid-test ratio among liquidity ratios, short-term bank loans / short-term liabilities among financial structure ratios, inventory turnover ratio among operating ratios and operating expenses / net sales ratios among profitability ratios were determined as the most important financial ratios. The findings show that effective management of financial ratios plays a critical role in ensuring sustainable growth and financial stability in the sector.