Financial Analysis of the Information and Communication 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
This study examines the financial status of the Information and Communication sector of Borsa Istanbul which is highly heterogeneous, through ratio analysis. To this end, annual frequency data from 2018 to 2022 were employed to perform the analysis. Various liquidity, leverage, operational, profitability, growth, and market ratios were calculated for the six enterprises in the sample. These calculated ratios were then compared to the sector averages in Borsa Istanbul's Information and Communication sector.The results obtained were also contrasted with relevant Central Bank of the Republic of Turkey sector ratios and calculated averages among enterprises, broken down by sub-sector. Findings from the study reveal that, on average, between 2018 and 2022, Ihlas Gazetecilik A.Ş. exhibited higher liquidity ratios compared to other enterprises in the sector. Doğan Burada Dergi Yayıncılık ve Pazarlama A.Ş. and Türk Telekomünikasyon A.Ş. were found to possess the highest leverage ratios. In terms of turnover rates, Ihlas Haber Ajansı A.Ş. demonstrated the highest accounts receivable turnover in the sample, Turkcell İletişim Hizmetleri A.Ş. had the highest inventory turnover, and Ihlas Gazetecilik A.Ş. had the highest trade payables turnover.When evaluated from a profitability standpoint, Turkcell İletişim Hizmetleri A.Ş. was found to have higher ratios than both the Borsa Istanbul Information and Communication sector averages and the Central Bank of the Republic of Turkey sector balance sheet ratios. In terms of growth, both Ihlas Haber Ajansı A.Ş. and Ihlas Gazetecilik A.Ş. were found to have higher sales, asset, and equity growth rates than both the Borsa Istanbul Information and Communication sector averages and the entral Bank of the Republic of Turkey sector balance sheet ratios.