Performance Evaluation of Renewable Energy Companies in Borsa Istanbul: A Comparative Analysis of Multi-Criteria Decision-Making Methods for the 2019-2023 Period

Havane Tembelo, Mustafa Özyesil

Abstract


This study conducts a comparative analysis of two prominent multi-criteria decision-making (MCDM) methods, TOPSIS and VIKOR, to evaluate the financial performance of renewable energy companies listed on Borsa Istanbul between 2019 and 2023. Financial indicators such as Net Profit Margin, Debt to Equity Ratio, Current Ratio, Return on Assets (ROA), and Return on Equity (ROE) were utilized to assess and rank the companies. TOPSIS was used to measure the proximity of each company to an ideal financial performance, while VIKOR aimed to provide a compromise solution that balances conflicting criteria. The results revealed different rankings generated by each method, underscoring the distinct advantages of TOPSIS in identifying alternatives closest to the ideal and VIKOR’s utility in handling conflicting objectives. This study demonstrates the practical application of MCDM methods in the financial evaluation of firms and offers insights into their respective strengths for decision-makers in the renewable energy sector.


Keywords


Renewable energy, Multi-criteria decision-making, TOPSIS, VIKOR, Borsa Istanbul

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References


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DOI (PDF): https://doi.org/10.20508/ijrer.v16i1.15876.g9168

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