Evaluation of Financial Performance of Textile Apparel Businesses Traded on BIST Using The Copras Method

Abstract

Purpose – The textile apparel sector holds a significant position in the economic development of countries thanks to its contribution to the economy and its positive effect on employment. Therefore, measuring the financial performance of textile apparel companies is very important for managers, investors, and other businesses in the industry. This study aims to evaluate the financial performance of companies operating in the textile apparel sector and traded on the Borsa Istanbul (BIST). Design/Methodology/Approach – Financial ratios selected as performance indicators, including "Current Ratio, Acid-Test Ratio, Cash Ratio, Financial Leverage Ratio, Return on Assets Ratio, Return on Equity, Inventory Turnover, and Accounts Receivable Turnover," were calculated separately for the years 2020, 2021, and 2022 by using balance sheet and income statement data of textile apparel companies traded on BIST. The performance of each company for each year was then analyzed by using the COPRAS method, which is one of the Multiple Criteria Decision-Making (MCDM) methods. Results – The company with high performance was BLCYT for the year 2020, ARSAN for the year 2021, and BLCYT for the year 2022. The lowest-performing companies were KRTEK for the year 2020, YUNSA for the year 2021, and ATEKS for the year 2022. Discussion – Future studies conducting comparative analyses using different MCDM methods will contribute to the understanding of the subject. Moreover, carrying out such studies systematically over the years, considering the changing conditions, will help decision-makers take preventive measures by consistently measuring and evaluating the performance of companies in the sectors.