EVALUATION OF FINANCIAL RATE ANALYSIS UNDER THE INTERMEDIATE METHOD: APPLICATION IN BIST WHOLESALE AND RETAIL TRADE, HOTEL AND RESTAURANT SECTOR

Abstract

There are a variety of methods and techniques used to analyze the results of operations. Financial ratio analysis using simple mathematical methods is the determination of the relationship levels of the accounts or account groups based on the financial data of the enterprise. Financial ratio analysis are the analyzes performed by using the financial position and performance tables of the enterprises. Financial ratio analyzes are used in order to evaluate the enterprises in a very different manner, but the ratios used for the purpose of providing a meaningful integrity are covered in certain issues (such as liquidity, financial structure, profitability). The financial data and rates used in financial ratio analyzes provide significant benefits in the detailed examination of the enterprises. However, in addition to these benefits, it cannot offer a comprehensive insight that can meet the business preferences of investors. As with financial ratio analysis, the use of multi-criteria decision-making methods together with classical methods makes the evaluations more meaningful. In the study, Aras method was used for multi-criteria decision making methods. The Aras method is an evaluation of alternatives (companies under appraisal) in terms of cost-benefit based on criteria (financial ratios). The Aras method is based on the determination of the optimal cost-benefit values and the benefit-cost values of the alternatives and the determination of the most suitable alternative. It is likely that decision-making becomes complicated in situations where the criterion values vary widely. According to all the criteria included in the Aras method, ranking of alternatives according to their optimum level provides significant benefits to decision mechanisms. The study aims to determine the most suitable operation of the sector according to the Aras method by using the financial ratios of the companies in Borsa İstanbul (BIST) Wholesale and Retail Trade, Hotel and Restaurant sector. For this purpose, the financial ratios of 24 companies in the related sector were evaluated by using multi - criteria decision making methods within the scope of Aras method. Based on the findings, various proposals were presented to benefit the decision-makers.