Abstract
Financial performance evaluation is crucial for competitive business world. Steel and iron industry is both high-tech heavy machine and labor-intensive industry, which makes it operating in a highly competitive environment. Therefore, the aim of this study is to evaluate the financial performance of Turkish steel and iron sector. For this aim, financial ratios of 17 basic metal industry firms listed in Borsa Istanbul in 2017 are calculated. Liquidity, efficiency, profitability and capital structure ratios are considered as main criteria of financial performance. By using Analytical Hierarchic Process (AHP), these criteria and related sub-criteria of each of them are assessed and weighted. These weights are then used in Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) for ranking. Obtained ranking is compared with ranking based on companies’ closing prices and results reveal that for 15 companies (88.235%) two rankings are very close. Therefore, it is concluded that combining AHP and TOPSIS should be used in financial performance evaluation.
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