A Research on Period Profitability of Companies Listed in the Basic Metal Industry: An Empirical Application

Gültekin TOPALOĞLU

Fiscaoeconomia, 2025, issue 1

Abstract: Firms that have a significant impact on national economies and are considered as one of the cornerstones of the industrial sector constitute the basic metal industry. The aim of this study is to analyse the relationship between the period profitability of the firms in the BIST basic metal industry index and revenue, shareholders' equity, short and long-term liabilities and cost of sales. Within the scope of the research, the data of the companies in the BIST basic metal industry index for the periods 2013-2022 as of 2023 were evaluated by panel regression analysis method. The results of the analysis show that firms' revenues and long-term debt utilisation have a positive effect on period profit. These findings reveal that the increase in revenues and the use of long-term financing sources within the scope of firms' growth and expansion strategies have a positive effect on profitability. On the other hand, variables such as short-term borrowing, equity utilisation and cost of sales are found to have a negative effect on firms' profit for the period. These results indicate that short-term financial liabilities and difficulties in cost management may negatively affect firms' profitability performance. In addition, as a result of the analysis, it is found that the revenue generated by the firms and the long-term debt utilisation of the firms have a positive effect on the period profits of the firms, while short-term borrowing, equity utilisation and cost of sales have a negative effect on the period profits of the firms.

Keywords: Profitability; Earnings; Financial performance; Borrowing; Equity (search for similar items in EconPapers)
JEL-codes: C21 G30 G51 M10 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:250121

DOI: 10.25295/fsecon.1452370

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