MEASURING FINANCIAL PERFORMANCES VIA TOPSIS AND GREY ANALYSIS; IRON & STEEL SECTOR EXAMPLES

Abstract

Financial analysis is based on an examination of the relationship between the balance sheet items and income statement that make up the fund structure of the business to determine the extent to which the financial equilibrium has been met and to ensure that rational decisions are taken accordingly. The purpose of this study is to demonstrate the applicability of Multi-Criteria decision making techniques in financial statement analysis. In the first part of this study, the Financial Tables analysis will be mentioned. In the second part, the types and uses of financial analysis techniques will be discussed. In the third chapter, multi criteria decision making techniques will be mentioned and also in this section, the five most common methods will be mentioned. In the last part, 2011-2016 balance sheet data of Ereğli Iron & Steel Inc. and Kardemir Iron & Steel Inc. will be evaluated with the help of financial analysis techniques.In this context, the financial statements of the two firms were analysed by ratio analysis, one of the financial analysis techniques. In the second stage, the results of the ratios analysis were analyzed using multi criteria decision making techniques. In this context, TOPSIS and GRA methods were utilized.