Evaluation of the Financial Performance of Borsa Istanbul IT Companies Using AHP-Based TOPSIS

Abstract

Purpose – The role of the information technology sector in the digitalization process has become increasingly important, making a detailed analysis of firms' financial performance necessary. This study aims to evaluate the financial performance of information technology companies operating on Borsa Istanbul between 2020 and 2024 and to identify the key financial indicators contributing to sectoral success.

Design/methodology/approach – The study includes 23 information technology companies that operated continuously during the analysis period and had complete data for the selected financial ratios. The analysis is based on 10 financial ratios that are widely used in the literature and regularly available. The weights of these ratios were determined using the Analytic Hierarchy Process (AHP), and the companies were then ranked by year according to their performance using the TOPSIS method.

Findings – The results indicate that MIATK, LINK, ARDYZ, MTRKS, and FONET demonstrated strong financial performance throughout the period. In contrast, MANAS, REEDR, ARENA, and DGATE obtained lower performance scores during the analysis period. The performance rankings varied across years.

Discussion – The findings suggest that financial flexibility, efficient resource utilization, and strategic alignment are important factors in achieving competitive advantage among information technology companies. The combined use of AHP and TOPSIS enables a comparative evaluation of firms' financial performance and provides analytical support for strategic management decisions.