Financial Performance Analysis of Borsa Istanbul Construction Index (XINSA) Companies With Entropy Based Copras and Aras Methods

Turkish construction sector is the main driving force of Turkish economy due to impact of it’s activities in national and international markets and formation of demand for goods and services produced by its sub-sectors. Turkish construction industry has been developed with the help of the Marshall Plan after World War II, and leading companies of the sector have been established. Bureaucracy, international credit institutions, and economy policies have direct effects on the development of constrcution sector. The fact that high and sustainable growth rate occurring in the construction sector has led to need for employment and importance of construction sector for Turkish economy has become more apparent. In this sector that is developing and growing within each day, the increase in the number of companies has brought upon competition and financial Performance analysis has come into front in providing competition superiority. In order to measure the financial situations of companies, level of adequacy of their activities during the period, and to make estimates for future periods, the periodic data in the financial statements must be made readable, meaningful and interpretable. The most common analysis used in the analysis of financial statement data is the ratio analysis technique. The ratio analysis technique is a method that demonstrates the significant relationships between the financial statement data numerically and enables these rates to be compared with each other and analyzed. As a result of the use of the ratio analysis technique, many data are found and these data make it difficult to make decisions. Multi-criteria decision making methods offer decision makers the best and provide objective data on the financial performance of firms as a result of financial analysis. The aim of this study is to compare the financial performance of the companies operating in Borsa Istanbul Construction Index. The difference between firms, financial ratios from data from the public disclosure platform in 2018, was analysed using multi-criteria decision making methods Entropy, Copras and Aras. In order to perform the analysis, 2018 data were subjected to the Ratio Analysis. By conducting an entropy analysis as a continuation of analysis, weights are calculated objectively and multi-criteria decision making methods were applied for the final performance ranking. As a result of the Copras and Aras methods, the financial performance ranking of the two methods is seen to be similar and the company with high financial performance for 2018 has been Edip Gayrimenkul Yatırım Sanayi Ve Ticaret AŞ.