CAMEL ANALYSIS OF TURKISH FINANCING COMPANIES


The aim of this study is to reveal the development directions of Turkish financing companies’ financial preformances and the dimensions which influence these performances. Yearly financial table data of the related companies for 2014-2017 period has been used by using CAMEL Analysis Approach. The performances that these companies displayed in Capital Adequacy, Asset Quality, Management Quality, Earnings and Liquidity dimensions have been evaluated and they were compared with each other. Also, the courses of sectoral averages have been investigated. As a result of the performance evaluation of the companies individually, Mercedes Benz Financing Company has taken the first row in Capital Adequacy and Management Quality dimensions; and The Koç Group’s financing companies have shared the first two rows in Earnings and Asset Quality dimensions. Şeker Mortgage Financing Company has taken the first row in Liquidity dimension. Orfin and Mercedes Benz Financing Companies has followed it. In the sectoral evaluation it has been found that the indicators related with Capital Adequacy, Asset Quality and Management Quality have changed in positive direction as from 2016. And it is noticed that Return on Asset has been increased but Return on Equity and Liquidity indicators have been decreased as from the same year. Consequently, financial performances of the financing companies which have the potential to form an alternative in some service areas for commercial banks, have had a progressive course. If this course maintains, this process will help deepening of the Turkish financial markets and reduction of their recource costs.


Keywords


CAMEL Analysis, Financing Companies, Financial Performance

Author : Arzum Erken ÇELİK
Number of pages: 735-759
DOI: http://dx.doi.org/10.29228/TurkishStudies.22944
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Turkish Studies-Economics,Finance,Politics
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