Application of the VIKOR Method in Financial Performance Evaluation of Financial Leasing and Factoring Companies

Abstract

Financial leasing and factoring are alternative financing techniques used to provide the funds needed by businesses that strive for the sustainability of their assets in today's intense competition conditions. These financing techniques are important because of the contribution they provide to economic growth along with the investment profitability of businesses. In the study, the financial performances of financial leasing and factoring companies traded in Borsa Istanbul were investigated using the VIKOR method. Within the scope of the study, annual financial leverage (external resources/liabilities), non-performing receivables/assets, financial leasing/factoring receivables/equities, main operating income/main operating expenses, other main operating incomes/other main operating expenses, financing expenses/external resources, net profit/equities, net profit/assets ratios for the 2016-2020 period of Creditwest Factoring, İş Financial Leasing, Lider Factoring, QNB Financeleasing and Vakıf Financial Leasing I.C. which are in the Borsa Istanbul leasing and factoring sector, were taken into account. According to the results of the VIKOR method, it was determined that Lider Factoring I.C. in the 2016-2019 period, and Creditwest Factoring I.C. in the 2020 period has the best performance. In line with these results, it is recommended that individuals or organizations that want to invest in financial leasing and factoring companies should first refer to Lider Factoring, Creditwest Factoring and QNB Finance Financial Leasing I.C.