COMPERATIVE ANALYSIS OF TRADITIONAL RATIOS WİTH CASH FLOW RATIOS ON MEASURING FINANCIAL PERFORMANCE: A PRACTISE ON BIST CEMENT COMPANIES WİTH TOPSIS METHOD

Ratio analysis is generally used to measure and evaluate financial performance. Used ratios change depending on the aim of the person or the institution. However, there are specific ratios accepted generally in the literature and the practis. Nonetheless, it is not negated that traditional financial ratios are deficient to show real financial situations of companies. At this point, deficiencies of traditional ratios can be complemented how cash flow ratios are used. In this study, financial performances of cement companies whose stocks are traded in Borsa Istanbul are analysed with TOPSIS method. Initially, traditional financial ratios and cash flow ratios of these companies are computed. After that, by using TOPSIS, computed ratios are converted to a single point which shows general performance of the company. When results are examined, it is determined that financial performances of companies based on traditional ratios and those based on cash flow ratios are different.