DETERMINING FINANCIAL RATIOS AFFECTING PROFITABILITY BY PANEL DATA ANALYSIS: AN APPLICATION IN THE BIST 100 FOOD SECTOR

Abstract

The aim of this study is to determine the relationship between the BIST 100 companies in the food sector and the financial ratios that affect the profitability. For this purpose, the data of 14 companies in the food sector traded in BIST between the years 2017-2020 were used. In the study, return on assets ratio and return on equity ratio were used as dependent variables, earnings per share, PD/DD ratio, current ratio, acid test ratio, receivables turnover and stock turnover were used as independent variables. The relationship between them was investigated using the panel data analysis method. According to the analysis results; there is a significant and positive relationship between return on assets ratio and earnings per share, PD/DD ratio, and receivables turnover; It has been determined that there is a significant and negative relationship between inventory turnover and stock turnover. There is a significant and positive relationship between return on equity ratio and earnings per share, PD/DD ratio, and receivables turnover; It has been determined that there is a significant and negative relationship between inventory turnover and stock turnover.