Financial Performance Analysis with the Entropy-Based TOPSIS in the Impact of the COVID-19 Pandemic: An Application on BIST

Abstract

The aim of this study is to evaluate the financial performances of the companies in the Chemical, Pharmaceuticals, Petroleum, Rubber and Plastic Products sector traded in Borsa Istanbul, before the COVID-19 pandemic and during the pandemic period with Entropy-based TOPSIS. The sector's reaching record sales figures with the pandemic and the increasing risks depending on the supply chain constitute the motivation of the study. 32 companies were included in the scope of the research; the years 2018, 2019 and 2020 are determined as the date range and the financial performances of the companies are calculated with “current ratio, acid-test ratio, cash ratio, inventory turnover, receivables turnover, asset turnover, financial leverage ratio, sales profitability, return on equity and return on assets”. As a result of the analysis, the most important ratio and the most successful company in 2018, 2019 and 2020; cash ratio-SODSN, receivables turnover-BAGFS and receivables turnover-BAGFS.