Financial Analysis of the Chemical Pharmaceutical Petroleum Rubber and Plastic Products Sector
Chapter from the book:
Kılıç,
Y.
&
Buğan,
M.
F.
&
Bayrakdaroğlu,
A.
(eds.)
2023.
Financial Analysis Applications in Borsa Istanbul: Sector-Based Reviews II.
Synopsis
In this study, a financial analysis of firms listed in BIST Chemical, Pharmaceutical, Petroleum, Rubber and Plastic Products Sector for the period of 2018-2022 has been conducted. The Chemicals, Pharmaceuticals, Petroleum, Rubber, and Plastic Products is an important sector in terms of having different product groups and fields of activity. In the study, ratio analysis, one of the financial analysis methods, was used to calculate the current ratio, acid-test ratio and cash ratio from liquidity ratios; leverage ratio and debt-equity ratio from financial structure ratios; receivables turnover ratio, inventory turnover ratio and trade payables turnover ratio from operating ratios; and return on assets ratio, return on equity ratio and net profit margin from profitability ratios for the firms in the sample. In addition, the average ratios of the Chemicals, Pharmaceuticals, Petroleum, Rubber and Plastic Products sector were obtained using the calculated ratios. These ratios were compared with BIST average ratios and Central Bank of the Republic of Türkiye (TCMB) sector ratios. More detailed results were obtained for the firms in the sector in the analysis results, it is generally determined that the firms included in the study have a lower ability to meet their short-term liabilities, use a higher proportion of debt funds to finance their assets and use their current assets at a low level of efficiency. In addition, the profitability ratios of the firms were found to be higher than the TCMB sector ratios.