EVALUATING FINANCIAL PERFORMANCE WITH MINIMUM SPANNING TREE APPROACH: AN APPLICATION IN AIRLINES COMPANIES

Abstract

The rapid development of technology increased aircraft productionand airlines that is alternative to land, rail, sea routes and a fastermeans of transport have an important position in the World. Airlinescompanies increasing their share day by day become an importantsector that has continued to grow. The purpose of the study is toevaluate success of World Airlines in terms of financial performance. Inour study, 19 airlines company’s data were used for the period 2008-2014. It is used various ratios calculating to evaluate financialperformance. Data set include accessible financial statement ofcompanies. MST approach method including ratio analysis is used.Financial performance indicators are Accounts Receivables TurnoverRate, Average Collection Period of Receivables, Inventory TurnoverAverage Inventory Turnover Period, Asset Turnover, Net Profit Ratio,Return on Assets Ratio and Return on Equity. After calculating ratios,given a brief topology of calculated ratios of 19 airline companies thathave been analyzed for he period 2008-2014 applying MST (minimalspanning tree) and Fourier analysis. Relations between companies withratio analysis have been analyzed using the Minimum Spanning Tree(MST) approach, which is frequently used in econophysics discipline.Verifications of the series have been tested with the Fourierdistribution. The results showed that Turkish Airlines are grown interms of profitability, total assets and annual sales every passing year.