FINANCIAL PERFORMANCE ANALYSIS OF COMPANIES IN THE BIST MANUFACTURING SECTOR BY TOBIN S Q RATIO

Abstract

Purpose- Investors need to pay attention to various factors when making investment decisions. As one of them, financial performance is measured with different methods and guides when investment decisions are made. In this study, it is aimed to analyze financial performances of companies in The BIST Manufacturing Sector. Methodology- 2017-2021 period financial data of the companies in The BIST Manufacturing Sector is retrieved via Finnet and financial analysis for 172 companies with perpetual data is conducted. The Tobin Q ratio, which was developed as a financial performance evaluation method by James Tobin in 1969, is used for financial performance analysis. Findings- 2017-2021 period BIST Manufacturing Sector Q ratio means are found over 1 for each year. In 2017 70%, in 2018 56%, in 2019 77%, in 2020 95% and in 2021 94% of the companies in BIST Manufacturing Sector are measured to have Q ratio more than 1. Moreover, the companies, coded as BFREN, FMIZP, KENT, and KONYA, are found to be among the first 10 companies with highest Q ratio. Conclusion- Findings reveal that the companies in The BIST Manufacturing Sector deploy resources efficiently, have current asset value with higher rates, and have more competitive power. In addition, it is determined that market value of most of the companies in BIST Manufacturing Sector are not “negatively affected” by the economic contraction due to Covid-19 pandemic in the year 2020, which is also among analysis period of the study, even, market values of most of the companies in the sector has begun a “trend of increase” after the first quarter of 2020. Keywords: Financial performance analysis, Tobin’s Q, BIST manufacturing sector JEL Codes: G29, P17, P47