A Comparative Analysis of Financial Performance by Firm Size in the Textile Manufacturing Sector: Evidence from the CBRT Sector Balance Sheets

Abstract

Purpose – Financial performance is one of the fundamental indicators reflecting firms' efficiency in utilizing resources, financial sustainability, and competitive strength. The purpose of this study is to comparatively analyze the financial performance of large-, medium-, and small-sized enterprises operating in the textile manufacturing sector and to examine the changes observed during the 2021-2023 period.

Design/methodology/approach – The study utilizes the sectoral balance sheet data of the textile manufacturing industry for the years 2021, 2022, and 2023 published by the Central Bank of the Republic of Türkiye (CBRT). The financial performance of enterprises was evaluated using a multidimensional analytical approach, including comparative financial statement analysis, ratio analysis, trend analysis, and DuPont analysis.

Findings – The findings indicate that large-sized enterprises demonstrate stronger financial performance in terms of liquidity, financial structure, and profitability compared with medium- and small-sized enterprises. The results also reveal that increasing production costs, rising financing expenses, exchange rate volatility, and declining external demand adversely affected the financial performance of enterprises across all size groups during the study period.

Discussion – The findings suggest that firm size is an important determinant of financial performance. Large-sized enterprises exhibit greater financial resilience, whereas medium- and small-sized enterprises are more vulnerable to adverse economic conditions. By providing a comparative financial performance assessment based on firm size using CBRT sectoral balance sheet data, this study contributes to the existing literature and offers practical implications for managers, investors, and policymakers in the textile manufacturing sector.