A Financial Ratio Analysis on BIST Information and Technology Index (XUTEK) Using AHP-weighted Grey Relational Analysis

Abstract

The financial ratio analysis is an important issue for the stock exchange markets which have many sub-sectoral indexes. During Industry 4.0 revolution and transition, the sector of information and technology is shown as one of the sectors that have great strategic importance in the global change and development process. So, the performance of the information and technology sector provides a significant added value to the economies. In this study, multi-criteria decision-making (MCDM) approaches will be used to determine the weights of the criteria with considering the experts’ opinions used in the evaluation of the financial performance of the companies operating in the field of Information and Technology Sector of BIST Stock Index (XUTEK). In order to measure the financial performance of companies with MCDM methods, the ratios of the liquidity, operational/activity, financial structure, and profitability are obtained from the financial statements are frequently applied in the scientific literature. In the study, criteria weights were determined by using the pairwise comparison feature of the analytical hierarchy process method and expert opinions. Then, the smallest and largest values of the financial ratio values in quarterly periods in 2020 and the uncertainty formed were evaluated with the gray relational analysis method. After all; XUTEK stocks to be included in the priority investment portfolio in terms of financial performance have been determined.

Keywords

• analytic hierarchy process
• grey relational analysis
• bist stock index
• uncertainty
• analitik hiyerarşi süreci
• gri ilişkisel analiz
• hisse senedi endeksi
• belirsizlik