Classification of Financial Ratios for BIST Manufacturing Sector Companies By Principal Axis Factor Analysis

Authors : Raad Hasan Abdo Naji Algalal, Ümran Münire Kahraman

Pages : 436-447

View : 38 | Download : 60

Publication Date : 2024-12-31

Article Type : Research Paper

Abstract :It can be said that financial analysis is an unavoidable requirement for companies. A company\\\'s board of directors, investors, creditors and anyone else interested in the company can use financial analysis to reveal the true financial position of the company. There are various methods for financial analysis, the most common of which is the analysis of financial ratios. There are many financial ratios in the literature and many of them are correlated. It is more advantageous for statistical analyses to derive a small number of new variables that explain a large portion of the variance of an aggregate of variables. This study aims to classify financial ratios for BIST Manufacturing Sector Companies using principal axis factor analysis and express them as new independent variables. As a result, five factors were extracted using principal axis factor analysis method and 22 financial ratios were distributed to these five factors. By reading the factor saturation results, it was determined that the number of saturated financial ratios appropriate for the sample size was 16 financial ratios.
Keywords : Finansal Oranlar, Temel Eksen Faktör Analizi, BIST