Financial Performance Analysis of Firms in the Energy Sector with Multi-Criteria Decision-Making Methods

Abstract

Today, in the energy sector, as in all other sectors, there are some risks and a competitive environment. Performance measurements have great importance in the analysis of how well-prepared they are against current risks and in order for businesses to continue to take place in the competitive environment without losing value. Financial performance analysis, on the other hand, covers the general analysis made to determine the strategic path to be drawn by determining the financial risks that businesses may face. Based on this, financial performance analysis of energy companies in the Borsa Istanbul (BIST) energy sector were made in this study. As a result of the analysis, the companies were compared both within themselves and with each other. In the study, the values obtained from the financial statements of the companies with the Ratio Analysis method were converted into numerical data to be used as criteria by means of various formulas. At the stage of obtaining the weights of the determined criteria, first of all, the criteria were evaluated by the experts in the energy sector through a questionnaire and then the weights were obtained by using the Analytical Hierarchy Process (AHP) method. In the analysis phase, the Ranking Technique in terms of Similarity to the Ideal Solution (TOPSIS) and Multi-Criteria optimization and Compromise Solution (VIKOR) methods were used. The study was carried out within the scope of 2015–2019 data of 10 energy companies in the energy sector. As a result of the study, it is aimed to evaluate the financial performance analysis of the companies, as well as to test the usability of Multi-Criteria Decision Making methods in this field and to present the results to the literature by comparing them with each other.