Year 2020, Volume 5 , Issue 1, Pages 29 - 37 2020-07-30

Cash Flow Based Financial Performance of Borsa İstanbul Tourism Companies by Entropy-MAIRCA Integrated Model

Fatih GÜNAY [1] , Fatih ECER [2]


The cash flow of a company is a key element for the firm value. The firm value of a company is depending largely on the ability to generate cash flows. In other words, a company’s firm value is calculated by using cash flows. Financial performance analysis helps companies in effective decision-making, planning, and auditing functions. Traditional ratio analysis uses the statement of financial position (balance sheet) and the profit and loss statement (income statement) to measure financial performance. However, the income statement of a company just shows the accounting profits. Depending on this, traditional ratios can sometimes be over or underestimated on measuring financial performances. To provide a better picture of a company’s financial strength and measure sensitive financial performance cash flow ratios were suggested instead of traditional ratios. Within this context, the aim of this study is to measure and compare the financial performance of Borsa İstanbul tourism companies with the use of cash flow based ratios. Ten tourism companies listed on BIST were evaluated by the Entropy-MAIRCA hybrid model. To achieve this, cash flow based eleven ratios were calculated within the indicators of liquidity, efficiency, profitability, and solvency (leverage). To calculate ratios a-year balance sheet, additionally, income statement and cash flow statement table gathered from Public Disclosure Platform. Findings of the Entropy method showed that the most important criteria were cash ratio, cash to sales, and cash to long term debts. According to the ranking results obtained by the MAIRCA method, the best tourism company is E. It was followed by G and D.
Cash Flow Ratios, Financial Performance, Tourism Companies, BIST, Entropy-MAIRCA
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Primary Language en
Subjects Hospitality Leisure Sport and Tourism
Journal Section Research Articles
Authors

Orcid: 0000-0003-0892-514X
Author: Fatih GÜNAY (Primary Author)
Institution: Ağrı İbrahim Çeçen Üniversitesi, Turizm İşletmeciliği ve Otelcilik Yüksekokulu, Gastronomi ve Mutfak Sanatları
Country: Turkey


Orcid: 0000-0002-6174-3241
Author: Fatih ECER
Institution: Afyon Kocatepe University, Faculty of Economics and Administrative Sciences
Country: Turkey


Dates

Publication Date : July 30, 2020

APA Günay, F , Ecer, F . (2020). Cash Flow Based Financial Performance of Borsa İstanbul Tourism Companies by Entropy-MAIRCA Integrated Model . Journal of Multidisciplinary Academic Tourism , 5 (1) , 29-37 . DOI: 10.31822/jomat.742022