Operational Research in Engineering Sciences

FINANCIAL PERFORMANCE MEASUREMENT OF COMPANIES IN THE BIST WITH SITDE AND RAWEC METHODS

Galip Cihan Yalçın ,
Department of Business, Faculty of Economics and Administrative Sciences, OSTIM Technical University, 06374 Ankara, Türkiye
Hamide Özyürek ,
Department of Business, Faculty of Economics and Administrative Sciences, OSTIM Technical University, 06374 Ankara, Türkiye
Karahan Kara ,
Department of Business, Faculty of Economics and Administrative Sciences, OSTIM Technical University, 06374 Ankara, Türkiye; Department of Business, Faculty of Economics and Administrative Sciences, İzmir Democracy University, 35140 İzmir, Türkiye
Nabila Nabila ,
Department of Business Administration Master Program, Graduate School of Social Sciences, OSTIM Technical University, 06374 Ankara, Türkiye
Vladimir Simic ,
Széchenyi István University, Egyetem tér 1, 9026 Győr, Hungary
Dragan Pamucar ,
UNEC Applied Artificial Intelligence Research Center, Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan; Faculty of Engineering, Doğuş University, 34775 Umraniye, Istanbul, Türkiye; Department of Applied Mathematical Science, College of Science and Technology, Korea University, Sejong, 30019, Republic of Korea

Abstract

This study aims to evaluate the financial performance of 36 companies from different sectors listed on Borsa Istanbul (BIST) Sustainability Index for the years 2021, 2022, and 2023 using multi-criteria decision-making (MCDM) methods. BIST companies represent Turkey's most actively traded and transparent companies. These companies constitute a suitable sample for our study because they provide reliable and accessible financial data and include Turkey's largest and most institutionally developed companies. Eight financial criteria were selected as performance measures, namely Price-to-Earnings ratio (P/E), Return on Capital Employed (ROCE), Tobin’s Q, Accounts Receivable Turnover, Operating Margin, Cost of Goods Sold, Market Capitalization, and Enterprise Value. The Similarity to Ideal-TOPSIS with Distance Entropy (SITDE) method was applied to objectively determine the weights of the criteria, while the Rank Aggregation with Weighted Entropy and Ideal Closeness (RAWEC) method was employed to rank the alternatives. The results of the study, in 2021, during the post-pandemic recovery, companies’ ROCE and Accounts Receivable Turnover were the most influential criteria. Tobin's Q, reflecting long-term investor and market expectations, remained highly important across all years. In 2022 and 2023, Enterprise Value and Market Capitalization emerged as key factors, highlighting the impact of company size and investor confidence on financial performance.

Keywords
Financial Performance, Borsa Istanbul, Multi-Criteria Decision-Making, Rank Aggregation with Weighted Entropy and Ideal Closeness.

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SCImago Journal & Country Rank

CiteScore for Management Science and Operations Research

8.1
2021CiteScore
 
 
89th percentile
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CiteScore for Engineering (miscellaneous)

8.1
2021CiteScore
 
 
93rd percentile
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