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PERFORMANCE ANALYSIS OF THE RESTAURANT AND HOTEL INDUSTRY: EVIDENCE FROM BORSA ISTANBUL

Year 2019, Volume 6, Issue 3, 115 - 123, 30.09.2019
https://doi.org/10.17261/Pressacademia.2019.1110

Abstract

Purpose - The aim of this study is to apply factor analysis to financial ratios of companies in Restaurant and Hotel industry by showing up the best ratio among each factor group and to detect the performance differences between restaurants and hotels. Methodology - The sample data cover between the years 2009 and 2018 of 13 observed companies at Borsa Istanbul. This study works on the financial ratios of the companies as performance variables. Factor analysis and the discriminant analysis is applied.

Findings - The results reveal that cash, return on equity, accounts receivable and inventory turnover are the key ratios. Moreover, hotels are differentiated by their high liquidity, receivables, and turnover ratios, where restaurants are differentiated by their profitability and solvency ratios. Conclusion -, the restaurants are more capable to satisfy their long-term debts. They have equal or even better performance when compared with their profit-oriented counterparts.

References

  • Abdul Aziz, A. & Rahman, A. (2017). The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa. International Journal of Economics and Financial Issues, 7(2), 86-93.
  • Arif, T. M. H., Noor-E-Jannat, K., & Anwar, S. R. (2016). Financial Statement and Competitiveness Analysis: A Study on Tourism & Hospitality Industry in Bangladesh. International Journal of Financial Research, 7(4), 180-189.
  • Aslan, T., & Yılmaz, E. (2018). Oran Analizi Yöntemi İle Konaklama Ve Yiyecek Hizmetleri Alt Sınıfındaki Küçük, Orta Ve Büyük Ölçekli İşletmelerin Finansal Performanslarının Karşılaştırmalı Analizi. Ida Academia Muhasebe ve Maliye Dergisi, 1(2), 36-52.
  • Bala, H., Garba, J., & Ibrahim, I. (2016). Corporate liquidity and profitability of listed food and beverages firms in Nigeria. Net Journal of Social Sciences, 4(1), 10-22.
  • Bilici, N. S., & Aydın, N. (2018). Konaklama İşletmelerinde Finansal Analizlere İlişkin Bir Örnek Olay İncelemesi. Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 22(4), 2333-2355.
  • Böcskei, E. (2014). Profitability and Efficiency – An analysis of the Financial Impact of the Szechenyi Plan In The Hungarian Hospitality Industry. Applied Studies in Agribusiness and Commerce, 8(4), 51-56.
  • Chen, M. H. (2010). The economy, tourism growth and corporate performance in the Taiwanese hotel industry. Tourism Management, 31(5), 665-675.
  • Damitio, J., Schmidgall, R. S., & Dennington, L. J. (1995). Financial statement analysis. Bottomline, 10(6), 10-23.
  • De, A., Bandyopadhyay, G., & Chakraborty, B. N. (2011). Application of the Factor Analysis on the Financial Ratios and Validation of the Results by the Cluster Analysis: An Empirical Study on the Indian Cement Industry. Journal of Business Studies Quarterly, 2(3), 13-31.
  • Delen, D., Kuzey, C., & Uyar, A. (2013). Measuring Firm Performance Using Financial Ratios: A Decision Tree Approach. Expert Systems with Applications, 40(10), 3970-3983.
  • Ecer, F., & Günay, F. (2014). Borsa İstanbul’da işlem gören turizm şirketlerinin finansal performanslarının gri ilişkisel analiz yöntemiyle ölçülmesi. Anatolia: Turizm Araştırmaları Dergisi, 25(1), 35-48.
  • Erdogan, A. (2014). Applying Factor Analysis on the Financial Ratios of Turkey's Top 500 Industrial Enterprises. International Journal of Business and Management, 8(9), 134-139. doi: 10.5539/ijbm.v8n9p134
  • Feng, C. M., & Wang, R. T. (2000). Performance evaluation for airlines including the consideration of financial ratios. Journal of Air Transport Management, 6(3), 133-142.
  • Karadeniz, E., İskenderoğlu, Ö., Kahiloğulları, S., & Zencir, B. (2014). Türkiye Cumhuriyet Merkez Bankası Sektör Bilançoları Yardımıyla Konaklama Ve Yiyecek Hizmeti Faaliyetleri Alt Sektörünün Likidite Durumunun Analizi. 15. Ulusal Turizm Konresi, 701-710.
  • Karadeniz, E., & Kahiloğulları, S. (2014). Akdeniz Bölgesi’nde Faaliyet Gösteren Beş Yıldızlı Otel İşletmelerinde Finansal Analiz Tekniklerinin Kullanımı. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, 9(1), 73-90.
  • Karataş, A. (2002). Performance of Direct Foreign Investments in Turkey. Unpublished Doctoral Thesis, Institute of Social Sciences, Bogazici University, Istanbul.
  • Kim, W. G., & Ayoun, B. (2005), "Ratio Analysis for the Hospitality Industry: A Cross Sector Comparison of Financial Trends in the Lodging, Restaurant, Airline, and Amusement Sectors", The Journal of Hospitality Financial Management, 13(1), 59-78. doi: 10.1080/10913211.2005.10653800
  • Kim, H. B., & Kim, W. G. (2005). The Relationship Between Brand Equity and Firms’ Performance in Luxury Hotels and Chain Restaurants. Tourism Management, 26(4), 549-560.
  • Lai, J. H. (2018). Performance and Risk: Hotel Company in France-Pierre & Vacances. https://dx.doi.org/10.2139/ssrn.3182160
  • Mardahleni, M. (2018). Profitability Ratio Analysis in Evaluating Financial Performance of Pt. Hanjaya Mandala Sampoerna, TBK. e-Jurnal Apresiasi Ekonomi, 6(3), 269-275.
  • MEGEP (2011). Konaklama ve Seyahat Hı̇zmetlerı̇. MEB Yayınları, Ankara.
  • Naumik-Gladkaya, E. G., & Devon, V. V. (2018). World Luxury Hotels and Key Financial Ratıos/Prıces/Trends Analyze. Комунальне господарство міст, 143, 2-8.
  • Ocal, M. E., Oral, E. L., Erdis, E., & Vural, G. (2007). Industry Financial Ratios - Application of Factor Analysis in Turkish Construction Industry. Building and Environment, 42(1), 385-392. doi: 10.1016/j.buildenv.2005.07.023
  • Özçelik, H., & Kandemir, B. (2015). BIST'de İşlem Gören Turizm İşletmelerinin Topsıs Yöntemi İle Finansal Performanslarının Değerlendirilmesi. Balikesir University Journal of Social Sciences Institute, 18(33), 97-114.
  • Pudjisuryadi, P., Lumantarna, B., Setiawan, R., & Handoko, C. (2018). Performance of an Existing Reinforced Concrete Building Designed in Accordance to Older Indonesian Seismic Code: A Case Study for a Hotel in Kupang Indonesia. Civil Engineering Dimension, 20(1), 35-40.
  • Singh, A. J., & Schmidgall, R. S. (2001). Use of ratios by financial executives in the US lodging industry. The Journal of Hospitality Financial Management, 9(1), 27-44.
  • Singh, A. J., & Schmidgall, R. S. (2002). Analysis of financial ratios commonly used by US lodging financial executives. Journal of Retail & Leisure Property, 2(3), 201-213.
  • Şen, L., Zengin, B., & Yusubov, F. (2015). Otel İşletmelerinde Finansal Analizlere İlişkin Bir Örnek Olay İncelemesi. İşletme Bilimi Dergisi, 3(1), 64-85.
  • Tan, L. Y. (2018). Analysis Relationship between Financial Variables and Market Risk in Accorhotels. https://dx.doi.org/10.2139/ssrn.3181642
  • Tamallo, E. (2018). Analisis Kinerja Keuangan Pada Hotel Grand Asia Di Makassar. AKMEN Jurnal Ilmiah. 15(1), 40-54.
  • Turizmin (2011). Turizmin Tarihsel Gelişimi. Available at: http://www.goktepe.net/turizmin-tarihsel-gelisimi-2.html (accessed 18 March 2018).
  • Uğurlu, M., & Aksoy, H. (2006). Prediction of corporate financial distress in an emerging market: the case of Turkey. Cross Cultural Management: An International Journal, 13(4), 277-295. doi: 10.1108/13527600610713396
  • Vaško, Ž., Ostojić, A., & Drinić, L. (2018). Financial Performance Analysis of the Companies in the Agricultural Sector and Food Industry in the Republic of Srpska. АГРОЗНАЊЕ, 19(2), 67-78.
  • Vatalis, A. (2018). Financial Analysis of the Biggest Hotel Companies. Unpublished Master’s Thesis. International Hellenic University, Greece.
  • Ziskos, C. (2019). Financial Analysis for Public Greek Hospitality Sector Companies. Unpublished Master’s Thesis. International Hellenic University, Greece.

Year 2019, Volume 6, Issue 3, 115 - 123, 30.09.2019
https://doi.org/10.17261/Pressacademia.2019.1110

Abstract

References

  • Abdul Aziz, A. & Rahman, A. (2017). The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa. International Journal of Economics and Financial Issues, 7(2), 86-93.
  • Arif, T. M. H., Noor-E-Jannat, K., & Anwar, S. R. (2016). Financial Statement and Competitiveness Analysis: A Study on Tourism & Hospitality Industry in Bangladesh. International Journal of Financial Research, 7(4), 180-189.
  • Aslan, T., & Yılmaz, E. (2018). Oran Analizi Yöntemi İle Konaklama Ve Yiyecek Hizmetleri Alt Sınıfındaki Küçük, Orta Ve Büyük Ölçekli İşletmelerin Finansal Performanslarının Karşılaştırmalı Analizi. Ida Academia Muhasebe ve Maliye Dergisi, 1(2), 36-52.
  • Bala, H., Garba, J., & Ibrahim, I. (2016). Corporate liquidity and profitability of listed food and beverages firms in Nigeria. Net Journal of Social Sciences, 4(1), 10-22.
  • Bilici, N. S., & Aydın, N. (2018). Konaklama İşletmelerinde Finansal Analizlere İlişkin Bir Örnek Olay İncelemesi. Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 22(4), 2333-2355.
  • Böcskei, E. (2014). Profitability and Efficiency – An analysis of the Financial Impact of the Szechenyi Plan In The Hungarian Hospitality Industry. Applied Studies in Agribusiness and Commerce, 8(4), 51-56.
  • Chen, M. H. (2010). The economy, tourism growth and corporate performance in the Taiwanese hotel industry. Tourism Management, 31(5), 665-675.
  • Damitio, J., Schmidgall, R. S., & Dennington, L. J. (1995). Financial statement analysis. Bottomline, 10(6), 10-23.
  • De, A., Bandyopadhyay, G., & Chakraborty, B. N. (2011). Application of the Factor Analysis on the Financial Ratios and Validation of the Results by the Cluster Analysis: An Empirical Study on the Indian Cement Industry. Journal of Business Studies Quarterly, 2(3), 13-31.
  • Delen, D., Kuzey, C., & Uyar, A. (2013). Measuring Firm Performance Using Financial Ratios: A Decision Tree Approach. Expert Systems with Applications, 40(10), 3970-3983.
  • Ecer, F., & Günay, F. (2014). Borsa İstanbul’da işlem gören turizm şirketlerinin finansal performanslarının gri ilişkisel analiz yöntemiyle ölçülmesi. Anatolia: Turizm Araştırmaları Dergisi, 25(1), 35-48.
  • Erdogan, A. (2014). Applying Factor Analysis on the Financial Ratios of Turkey's Top 500 Industrial Enterprises. International Journal of Business and Management, 8(9), 134-139. doi: 10.5539/ijbm.v8n9p134
  • Feng, C. M., & Wang, R. T. (2000). Performance evaluation for airlines including the consideration of financial ratios. Journal of Air Transport Management, 6(3), 133-142.
  • Karadeniz, E., İskenderoğlu, Ö., Kahiloğulları, S., & Zencir, B. (2014). Türkiye Cumhuriyet Merkez Bankası Sektör Bilançoları Yardımıyla Konaklama Ve Yiyecek Hizmeti Faaliyetleri Alt Sektörünün Likidite Durumunun Analizi. 15. Ulusal Turizm Konresi, 701-710.
  • Karadeniz, E., & Kahiloğulları, S. (2014). Akdeniz Bölgesi’nde Faaliyet Gösteren Beş Yıldızlı Otel İşletmelerinde Finansal Analiz Tekniklerinin Kullanımı. Eskişehir Osmangazi Üniversitesi İktisadi ve İdari Bilimler Dergisi, 9(1), 73-90.
  • Karataş, A. (2002). Performance of Direct Foreign Investments in Turkey. Unpublished Doctoral Thesis, Institute of Social Sciences, Bogazici University, Istanbul.
  • Kim, W. G., & Ayoun, B. (2005), "Ratio Analysis for the Hospitality Industry: A Cross Sector Comparison of Financial Trends in the Lodging, Restaurant, Airline, and Amusement Sectors", The Journal of Hospitality Financial Management, 13(1), 59-78. doi: 10.1080/10913211.2005.10653800
  • Kim, H. B., & Kim, W. G. (2005). The Relationship Between Brand Equity and Firms’ Performance in Luxury Hotels and Chain Restaurants. Tourism Management, 26(4), 549-560.
  • Lai, J. H. (2018). Performance and Risk: Hotel Company in France-Pierre & Vacances. https://dx.doi.org/10.2139/ssrn.3182160
  • Mardahleni, M. (2018). Profitability Ratio Analysis in Evaluating Financial Performance of Pt. Hanjaya Mandala Sampoerna, TBK. e-Jurnal Apresiasi Ekonomi, 6(3), 269-275.
  • MEGEP (2011). Konaklama ve Seyahat Hı̇zmetlerı̇. MEB Yayınları, Ankara.
  • Naumik-Gladkaya, E. G., & Devon, V. V. (2018). World Luxury Hotels and Key Financial Ratıos/Prıces/Trends Analyze. Комунальне господарство міст, 143, 2-8.
  • Ocal, M. E., Oral, E. L., Erdis, E., & Vural, G. (2007). Industry Financial Ratios - Application of Factor Analysis in Turkish Construction Industry. Building and Environment, 42(1), 385-392. doi: 10.1016/j.buildenv.2005.07.023
  • Özçelik, H., & Kandemir, B. (2015). BIST'de İşlem Gören Turizm İşletmelerinin Topsıs Yöntemi İle Finansal Performanslarının Değerlendirilmesi. Balikesir University Journal of Social Sciences Institute, 18(33), 97-114.
  • Pudjisuryadi, P., Lumantarna, B., Setiawan, R., & Handoko, C. (2018). Performance of an Existing Reinforced Concrete Building Designed in Accordance to Older Indonesian Seismic Code: A Case Study for a Hotel in Kupang Indonesia. Civil Engineering Dimension, 20(1), 35-40.
  • Singh, A. J., & Schmidgall, R. S. (2001). Use of ratios by financial executives in the US lodging industry. The Journal of Hospitality Financial Management, 9(1), 27-44.
  • Singh, A. J., & Schmidgall, R. S. (2002). Analysis of financial ratios commonly used by US lodging financial executives. Journal of Retail & Leisure Property, 2(3), 201-213.
  • Şen, L., Zengin, B., & Yusubov, F. (2015). Otel İşletmelerinde Finansal Analizlere İlişkin Bir Örnek Olay İncelemesi. İşletme Bilimi Dergisi, 3(1), 64-85.
  • Tan, L. Y. (2018). Analysis Relationship between Financial Variables and Market Risk in Accorhotels. https://dx.doi.org/10.2139/ssrn.3181642
  • Tamallo, E. (2018). Analisis Kinerja Keuangan Pada Hotel Grand Asia Di Makassar. AKMEN Jurnal Ilmiah. 15(1), 40-54.
  • Turizmin (2011). Turizmin Tarihsel Gelişimi. Available at: http://www.goktepe.net/turizmin-tarihsel-gelisimi-2.html (accessed 18 March 2018).
  • Uğurlu, M., & Aksoy, H. (2006). Prediction of corporate financial distress in an emerging market: the case of Turkey. Cross Cultural Management: An International Journal, 13(4), 277-295. doi: 10.1108/13527600610713396
  • Vaško, Ž., Ostojić, A., & Drinić, L. (2018). Financial Performance Analysis of the Companies in the Agricultural Sector and Food Industry in the Republic of Srpska. АГРОЗНАЊЕ, 19(2), 67-78.
  • Vatalis, A. (2018). Financial Analysis of the Biggest Hotel Companies. Unpublished Master’s Thesis. International Hellenic University, Greece.
  • Ziskos, C. (2019). Financial Analysis for Public Greek Hospitality Sector Companies. Unpublished Master’s Thesis. International Hellenic University, Greece.

Details

Primary Language English
Subjects Management
Journal Section Articles
Authors

Nida TUREGUN This is me (Primary Author)

0000-0002-1912-5095

Publication Date September 30, 2019
Published in Issue Year 2019, Volume 6, Issue 3

Cite

APA Turegun, N. (2019). PERFORMANCE ANALYSIS OF THE RESTAURANT AND HOTEL INDUSTRY: EVIDENCE FROM BORSA ISTANBUL . Journal of Economics Finance and Accounting , 6 (3) , 115-123 . DOI: 10.17261/Pressacademia.2019.1110

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