Examining the financial performance of companies using cluster analysis: a research on the BIST Industrial Index

The objective of this study was to utilise cluster analysis to examine the financial performance of companies. A total of 217 companies were included in the study, with data from 2021 and 2022 available for analysis. Two distinct cluster analyses were conducted utilising the financial ratios of the companies for the years 2021 and 2022. The K-Means clustering algorithm was employed for the cluster analysis, which was conducted using the WEKA software. The results of the analysis revealed that seven companies with more positive financial performance in 2021 were separated from the other cluster and grouped together, while 43 companies with more negative financial performance in 2022 were separated from the other cluster and grouped together in a different cluster. Furthermore, all companies included in the index were analysed collectively, affording a comprehensive overview and assessment of the entire index. The findings of the study indicate that 2022 was a more challenging year for BIST SINAİ companies in terms of financial performance than 2021.