COMPARISON OF THE FINANCIAL PERFORMANCES OF THE COMPANIES OPERATING IN THE RENEWABLE ENERGY SECTOR TRADE ON BORSA ISTANBUL WITH THE ENTROPY BASED TOPSIS METHOD

Year 2023, , 1 - 27, 12.12.2023

Yüksel Akay Ünvan , Sinem Uz

https://doi.org/10.61725/abj.1353257

Abstract

The financial performance analysis of the companies operating in the energy sector of the countries will be an important indicator for the countries. Especially with the renewable energy sector gaining importance, the most basic way for companies in the renewable energy sector to be successful and ensure their continuity is to pay attention to their financial performance management and take a role in the global market. It is very important for companies to determine the status of their financial performance. Because of this situation, companies use ratio analysis, one of the methods used in the analysis of financial statements, in order to determine the status of their financial performance. It is used to determine the significant relationships between the accounts in the financial statements with the ratio analysis technique. In this method, mathematical relations are established between accounts or groups of accounts. With the results obtained with mathematical relations, it is tried to reach a judgment about the economic and financial structure of the enterprise.
The aim of this study is to examine 8 companies operating in the energy sector in Turkey and operating in renewable energy sources among the companies registered in Borsa Istanbul (BIST). The financial statements of 8 companies for the years 2020, 2021, and 2022 will be examined using ratio analysis, one of the financial analysis methods, and their financial performance, liquidity, leverage, activity, and profitability will be examined. The reason for choosing the 2020 period is that it can reach the financial statements, and the number of companies in the renewable energy sector is at its maximum level. In the first chapter, energy and energy resources are defined, and the energy sector in the world and in Turkey is examined. In addition, similar studies in the literature are included in this section. In the second part, financial performance analysis and its methods are mentioned, and the multi-criteria decision-making method is mentioned. In the third part, their financial performances are analyzed and interpreted using the ratio analysis method. After these processes, after weighting the criteria objectively with Entropy methods, the companies were ranked according to their performances by making use of the distances from the ideal solution with TOPSIS, one of the multi-criteria decision-making (MCDM) methods. In the last part, the findings obtained as a result of the application were presented, and in the conclusion part, evaluations were made and interpreted.

Keywords

Renewable Energy, Financial Performance, Entropy, TOPSIS

References

• Aktaş E., Alioğlu O. (2012). Türkiye’de Enerji Sekötürü Analizi: Marmara Bölgesi Termik Santraller Örneği, Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 21(1): 281-298.