Measuring Financial Performance with Ratio Analysis: An Empirical Practice on Firms Operating in the Technology Sector

Zehra Yoloğlu ()
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Zehra Yoloğlu: Alanya Alaaddin Keykubat University, Postal: Alanya,Turkey

Bulletin of Economic Theory and Analysis, 2021, vol. 6, issue 2, 27-53

Abstract: In this study, financial performances of technology companies traded in Borsa Istanbul were determined by using ratio analysis method by using balance sheet and income statement items for the years 2016-2020. The aim of the study is to measure the financial performance of the companies and to reveal the impact of the Covid-19 epidemic on the financial (financial) statements of the companies. The data used in the study were obtained from the Public Disclosure Platform (KAP) and the Finnet website and analyzed with the Microsoft (MS) Excel computer program. In the study, the liquidity, activity, financial structure and profitability ratios of the companies were examined within the scope of ratio analysis. It is seen that the liquidity ratios of the companies calculated within the periods are appropriate according to the standards, that is, their liquidity status is sufficient. Although there was a decrease in the current and liquidity ratios of companies in 2020, when the Covid-19 epidemic was effective, it was still found to be above critical values. While the inventory turnover and current asset turnover were at high levels during the period under consideration, they decreased in 2020. When the financial structure ratios are analyzed, it is seen that the share of short-term liabilities is high in the borrowing ratios where the capital structure of the companies is generally composed of own resources. When the profitability ratios are examined, it is observed that the companies progressed in a fluctuating course over the years and fell to negative levels in 2018-2019. However, it was determined that the profitability rates of the companies increased during the epidemic period.

Keywords: Covid-19; BIST 100; Ratio Analysis (search for similar items in EconPapers)
JEL-codes: G10 G20 (search for similar items in EconPapers)
Date: 2021
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