Evaluation of the Financial Performances of the Companies in Borsa Istanbul Automotive Index in the COVID-19 Period According to the TOPSIS Method

Abstract

Purpose – The purpose of this study is to examine how the financial circumstances of the industry companies exchanged in the Istanbul Stock Exchange (BIST) before the Covid-19 epidemic began and during the epidemic process affected the economic health of the auto industry, which is the locomotive of employment, R&D, sustainability, and exports in relation to the Turkish economy. Design/methodology/approach – In this study, eight automotive-related companies with stocks quoted on the Borsa Istanbul (BIST) exchange had their financial statements used to calculate 14 ratios. The rates chosen encompass the initial period of 2019 and the last quarter of 2021 and are based on factors such as liquidity, activity, financial structure, and profitability. The TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method, one of the multi-criteria decision-making techniques, was used to assess financial analyses. Findings – In this study, the trend of the determined ratios before and after Covid-19 (between 2019-2021) was examined. As a result of the results obtained, in the 1st step the Decision Matrix for each period, in the 2nd step the Normalized Decision Matrix for the periods and with the preparation of the Weighted Standard Decision Matrix in the 3rd step ideal A+ and ideal A- solutions were created in the 4th step. In the 5th step, the distance measurements between the alternatives were calculated. In the final step, which is the 6th step, closeness calculations were made according to the ideal solution. As a result, the Ci values of the companies between the periods 2019-1, 2021-3 were determined. Discussion – The study's findings are consistent with those of earlier research on the topic. During the time leading up to the Covid-19 process, the start of the process, and the procedure itself, all of the companies' financial performances remained essentially unchanged with the exception of TOASO. In this situation, evaluating investment, R&D, and export alongside the financial results of the companies may be possible.