Financial Performance Evaluation of Turkish Energy Companies with Fuzzy AHP and Fuzzy TOPSIS Methods

Turkey’s economy has expanded in recent years with the increase in energy consumption. Energy is a key input in production and plays a crucial role in the development of an economy. Energy sector interacts with other sectors hence the performances of energy firms are inevitable to follow-up. In the study thirteen energy firms are evaluated with 5 main and 15 sub-criteria for the period of 2008-2013. The 15 sub-criteria are classified in the following main criteria: liquidity, activity, financial leverage, profitability and growth ratios. The weights of the ratios are determined by Fuzzy AHP and then Fuzzy TOPSIS method is used for the rankings of the energy firms. Traditional multi-criteria decision making methods are not used in this study, due to the fact that they are insufficient under uncertainty. After 2008 global financial crisis, the uncertainty has increased all over the world hence the usage of fuzzy methods can provide better results under these conditions. Findings show that Avrasya Oil, Turcas and Aksu have the highest ranking.