Comparison of Firm Performances: An Application on BIST with Promethee Method

Abstract

In this study, the performances of the 23 enterprises includedin the Borsa Istanbul Metal Goods, Machinery Index between 2012-2016 were measured using Ratio Analysis and Economic Value Added (EVA) method. The ratios used in the study are the operating profit margin,total equity / total assets, current ratio, earning before interest,taxes depreciation and amortisation (ebitda) margin, liquidity ratio, net profit margin, price-earning ratio, market value / book value, profit per share, financial debt / equity. The Promethee process, which is one of the Multi Criteria Decision Making Techniques, was used to compare the enterprises whose performance was measured according to the ratio analysis and EVA methods. According to the findings, the results of the rate analysis and EVA analysis differ between years and the outputs of the two methods should be evaluated differently.

Keywords

• firm performance
• multi-criteria decision making
• promethee method.