Financial Analysis of the Food, Beverage and Tobacco Sector
Chapter from the book:
Financial Analysis Applications in Borsa Istanbul: Sector-Based Reviews I.
This study aims to analyze the Food, Beverage and Tobacco sector, which has an important place in the Turkish economy, with financial analysis methods. In the study, financial statement data of 9 sector companies whose shares are traded on Borsa Istanbul, whose data can be accessed regularly in the period 2018-2022 and which are among the leading companies in the sector were used. In the study, both the average data of the sector and the data of the companies were interpreted. Ratio analysis and trend analysis methods were used in the financial analysis of the sector companies. In this respect, firstly, the liquidity ratios of the companies were analyzed and it was concluded that the sector has a solid foundation in terms of liquidity in general. Therefore, companies have the ability to pay their short-term debts. When the financial structure ratios are analyzed, it is determined that the borrowing levels of the companies vary, some companies are equity intensive while others prefer to borrow and benefit from financial leverage. The borrowing structure also varies within companies. While companies generally prefer long-term borrowing, there are also companies that rely heavily on short-term debt. It can be said that this situation stems from the different access to borrowing facilities by companies. An analysis of profitability ratios reveals that the sector's overall profitability level is high. With the exception of one company in particular, the return on equity of the eight companies analyzed in the sector is well above the sector average, while the company with low return on equity has a high profit from operating activities. When the Tobin's Q value, which is calculated according to the market capitalization of the companies, is analyzed, it is seen that this ratio is low, but has increased steadily over the 5-year period. Lastly, the beta coefficient, which is an indicator of sensitivity to market capitalization, is low, indicating that the sector does not react aggressively to increases and decreases in the market.
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Copyright (c) 2023 Yunus Kılıç, Mehmet Fatih Buğan, Ali Bayrakdaroğlu; Yunus Kılıç, Mehmet Fatih Buğan, Serdar Yaman, Turhan Korkmaz, Kemal Faruk Yazgan, Şakir Sakarya, Yusuf Tepeli, Ali Bayrakdaroğlu, Haşim Bağcı, Yunus Emre Kahraman, Emre Arslan, Salih Aydın, Ahmet Çakmak, Yaşar Şahin, Ali Ulvi Özgül, Ayşegül Ciğer, Bülent Kınay