This study examines the financial performance of companies operating in the Turkish textile sector and traded on the Istanbul Stock Exchange (BIST) for the period 2020–2024 using ratio analysis. The aim of the study is to evaluate the financial structures of firms operating in the textile sector within the framework of liquidity, financial leverage, operating efficiency, and profitability indicators, and to reveal the sector's periodic financial outlook. In this context, the evaluation was conducted using data from 15 companies in the Textile, Apparel, and Leather sector of the Istanbul Stock Exchange. The analysis results show that the textile sector exhibits a heterogeneous financial structure on a firm-by-firm basis during the period examined. While liquidity ratios are at acceptable levels across the sector, the low cash ratios indicate that firms largely meet their short-term liabilities through inventories and trade receivables. In the financial structure analysis, the decline in leverage ratios for the sector average over the years suggests that firms have adopted a more cautious approach in their borrowing policies. Operating ratios show that effective receivables and inventory management plays a decisive role in the financial performance of firms; It has been observed that firms with particularly high accounts receivable turnover ratios have relatively stronger operational efficiency. While profitability ratios weakened during the 2020–2021 period, they showed a tendency to recover in 2022; however, it has been determined that profitability came under pressure again in some firms in 2023 and 2024 due to increasing costs and weakening demand conditions. The findings reveal that evaluating financial performance in the textile sector with one-dimensional indicators is insufficient and that multi-dimensional, firm-based analyses are necessary. It is considered that the results of the study will provide an empirical contribution to the academic literature on the textile sector, as well as being guiding for financial decision-making processes for sector managers and policymakers.