Financial Analysis of Hospital Services Sector of Turkey in a Sustainability Approach Using Reports of the Central Bank of the Republic of Turkey

Özet

Purpose – The purpose of the study is to discuss the financial condition of the hospital services in Turkey in a sustainability approach. The study aims to reveal the financial structure of the sector to determine improvement areas. Design/methodology/approach – To conduct the analysis, the study used the reports of the Central Bank of the Republic of Turkey. The data were obtained from 2010 to 2020. Vertical, horizontal, and key ratios analyses were conducted. The financial sustainability of the sector was discussed by using the financial ratios. To begin with, the financial and asset structure of the sector were examined. Followingly, liquidity, the efficiency of assets, and profitability indicators were calculated and evaluated in terms of financial condition and sustainability. Findings – The results of compared data showed that the sector has been dominantly and increasingly financed with debt through the last decade. The cash conversion cycle has been a significant challenge for the analysis period. The sector suffered from losses for many years. The findings give strong signals that the sector may face financial sustainability problems in the future. Discussion – The findings of the study revealed the financial structure of the hospital services sector can be used as a significant tool to make improvements. These findings indicated that the businesses in the analyzed sector should be more focused on production costs and cash conversion cycle, and improve the collection period and inventory turnover level. It is proposed to conduct contemporary cost management tools to be able to be aware of unit costs and have the proper information to improve financial condition.