The Analysis of Return on Equity of Tourism Industry

Author : H.Yusuf GÜNGÖR - M.Recep ARMUTLU
Number of pages : 137-152


In this study, the change of return of equitiy of public tourism companies that trading in İstanbul Stock Exchange (BIST) by using six year financial data had been examined. Through the examination of these data, the events affecting the return on equity of the sector were analyzed and the future trend of the equity profitability was estimated. The financial statements of the financial periods of 2013-2018 were examined and the shareholders' equity changes in this process were monitored. The evaluation of net profit margin, return on assets, and return on equity was determined by years. As a result of the analysis of the averages of the firms, it has been revealed that there are not very dramatic changes in the resources and some cyclical situations affect the industry. The tourism sector is heavily influenced by all situations. It has been observed that political and security-related situations in the country strongly affect the economic structure. Particularly, the impact of the coup attempt in 2016 had a deep negative impact on all indicators of the firms. In the correlation analysis, it was determined that the return on equity is a strong and significant relationship with the asset turnover rate, equity multiplier and operating income. There is a significant positive relationship between profit, sales revenues, financial leverage and activity leverage.


Return on Equity, tourism industry, financial analysis


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