Explanatory Variables

R-squared with Own Cluster

1-R**2 Ratio

Liquidity Ratios

Group I

Current Ratio

Current Assets/Current Liabilities

0.8933

0.1634

Group II

Acid-Test Ratio

Current Assets Less Stocks/Current Liabilities

0.8765

0.1511

Financial Structure Ratios (Borrowing Rates)

Group I

Short-Term Leverage

Short-Term Liabilities/Total Liabilities

0.8731

0.1599

Group II

Debt Ratio

Total Debt/Total Assets

0.8936

0.1522

Group III

Fixed assets to equity ratio

Fixed assets/equity

0.7307

0.3153

Group I & III

Equity Ratio

Total Equity/Total Assets

0.8943 & 0.8722

0.1947 & 0.174

Debt Service Coverage Ratio

Group III

Interest Coverage Ratio

EBIT/Interest Expenses

1

0

Sales Turnover

Group II

Asset Turnover

Net Sales/Total Assets

0.7848

0.2856

Group III

Equity Turnover Ratio

Net Sales/Equity

0.8006

0.3339

Group I & II

Fixed Assets Turnover Rate

Net Sales/Fixed Assets

0.892 & 1

0.1178 & 0

Relationship Between Profit and Capital

Group I & II

Return-on-Assets

Net Profit/Total Assets

0.7903 & 0.6216

0.2533 & 0.506

Group II & III

Return on Equity Before Tax

Profit Before Tax (pbt)/Equity

1 & 0.8379

0 & 0.173

Relationship Between Sales and Capital

Group I & II & III

Gross Profit Margin

Gross Sales Profit/Net Sales

0.9928 & 0.718 & 0.8671

0.0094 & 0.3265 & 0.1599

Financial Markets & Macroeconomic Indicators

Group III

The Producer Price Index (PPI)

0.6839

0.3561

Group I & II

Interest Rates for Banks’ Loans

0.6785 & 0.7044

0.5288 & 0.4885

Group I & II & III

Non-Performing Loans/Total Cash Loans Ratio

0.8016 & 0.8004 & 0.8003

0.2502 & 0.252 & 0.2868

Stock Market Data (BİST Indexes)

Group III

BIST Technology Index

0.9604

0.0674

Group I & II

BİST Industrial Index

0.9443 & 0.9564

0.0984 & 0.0618