Analysing the Financial Performance of Publicly Traded Companies Using Grey Relational Analysis and the Entropy Method

Abstract

This study analysed the financial performances of four healthcare enterprises traded on the Istanbul Stock Exchange (BIST) using the entropy model and the grey relational analysis method. In this study, the consolidated annual financial data of the enterprises for the years 2021 and 2022 were employed. The financial data was calculated based on financial ratios falling under four main headings and 23 sub-headings. The ratios of liquidity, financial structure, activity and profitability were calculated. The impact levels on financial performance on an annual basis were then calculated using the entropy method. Finally, financial performance levels were determined using the grey relational analysis method. The study concluded that hospitals with high cash ratios, net working capital turnover rates, financing ratios and net profit margins may also have high financial performance.