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The impact of the global economic crisis on working capital of real sector in Turkey.

Introduction

Contemporary companies are forced to compete in the national and also global markets under crucial rules. For sustainable profits a company has to apply a disciplinary manner, scan the rivals, and satisfy its shareholders and uncountable stakeholders. Not only companies coated in stock exchanges markets, but also the others have to apply dynamic financial management techniques and leave the old fashioned management styles. It is believed that by managing this way, a company may prosper and reach improved performance levels.

Even though the importance of efficient working capital management is well known, still there are companies on different scales not stressing working capital management. Fatih Ozatay (2009) emphasizes that there are a few basic things not to be forgotten, under crises circumstances. No matter the company is public or private; there will be a problem under poor balance sheet conditions. Working capital is related to company characteristics, financial conditions and company indicators as well. Since poor performance through the end of 1990s, financial institutions applied tight credit policies in order to decrease deposit/loans ratio. In order to adapt to changing financial conditions, investors were supposed to manage more prudently their working capitals. Kargar and Blumenthal (1994) demonstrated that many investments shut-down due to bad working capital management despite healthy operations and profits (Chiou et al., 2006). In addition, minute decreases in additional working capital investment may increase the prices of shares (Strischek, 2001).

Even though working capital management, meaning the investment in current assets and comprising the management of assets which are to be liquidated in a year or less, is very crucial to companies, no efficient analyses are observed. However, net working capital affects the decisions to reach the optimum balance between the company capital and the risk. The healthy and efficient cash management and taking proper decisions considering receivables and inventory management are required. Net working capital shows the debt payment ability of the firm and is the difference between the assets and external sources to be liquidated in less than a year.

Studies about working capital

A study on determinants of working capital management (WCM), such as conjuncture indicators, industry impact, and company cash flow, leverage, growing opportunities, company performance and size of company, has been conducted by Chiou et al. (2006). Data about 35 quarters, starting with the first quarter of 1996 and the third quarter of 2004, have been used. NLB (1) and WCR (2) have been applied; the results demonstrate that leverage and cash flow are affecting working capital management (2006).

Filbeck and Krueger (2005) argued that companies minimizing the fund levels on current assets are able to decrease the cost of financing or can use the excess of funds in reinvestment. These authors used CFO (Chief Finance Officer) magazine's data about yearly Company Working Capital Management Survey to make a research in the basic items of WCM. Working capital measurements of 1000 companies from 32 industry sectors, each comprising at least 8 companies, were used to calculate the mean and variance. The questions put in analysis were as follows; "is there a concentration of sector specific firms in working capital measurement?"; "does WCM performance of sector specific firms change from one year to another?" They have concluded that working capital measurements of several industry sectors seriously differ through time (Filbeck and Krueger, 2005).

Global economic crisis

In our analysis it will be proper to discuss the crisis prevailing conditions of Turkish economy. Mentioned indicators are given in Table 1. As can be seen in the table, yearly inflation rate increased from 8.39% in the 4th quarter of 2007 to 11.13% in the 3rd quarter 2008. Central Bank's interest rate increased from 15.75% to 16.25% during the same period. Due to the cash outflows, dollar/TL parity depreciated from 1.26 in the 3rd quarter 2008 to 1.67 in the 1st quarter of 2009. Unemployment rate increased from 10.3% to 15.8% during the same period.

The growth rate in Gross Domestic Product (GDP) dropped from 0.9% to -14.6% in the same period. As a result of this huge drop in the GDP rate, the inflation rate dropped from 11.13% in the 3rd quarter of 2008 to 5.27% in the 3rd quarter of 2009. There was a parallel shift in the interest rates of the Central Bank; the interest rate decreased from 16.75% to 7.25% during the same period. The growth rate of GDP sustained positive: it is 6% in the 4th quarter of 2009. As a result of these prevailing economic conditions in Turkey, it would not be wrong to argue that the impact of Global economic crisis (GEC) did not continue for long period of time.

There were short-term capital outflows in the third quarter of 2008 in emerging markets due to the GEC. As a result of these capital outflows, Turkish Lira depreciated against other currencies, economic growth diminished, and unemployment increased. GEC led to increase in the currency, liquidity and credit risks in emerging markets like Turkey. These risks also influenced real sector in Turkey.

During GEC, it is believed that every country and almost each sector and most of the companies are affected negatively. However, while causing threats in some sectors, crises also bring new opportunities to some others. Therefore, it would be meaningful to analyze companies representing the sector they are in. The crisis is not over yet. This is why it is not possible to diagnose exact effect of it. However, it is possible to understand the short term effect of the crisis. Working capital management is one of the cornerstones of business continuity and acts as a hedge against tightening credit and access to additional capital. Companies which manage their working capital optimally during times of recessions come out stronger after the recession period. During times of boom cycles it is easy to forecast working capital needs and manage liquidity. The real test however comes during bust cycles as witnessed by the world during 2008 and 2009. GEC has forced many companies into cash flow problems, due to non availability of working capital, which in turn have led to shrinkage of operations, postponement of plans for capital expansion into different markets, etc.

Thus, the impact of GEC on the working capital (current assets and current liabilities) of real sector in Turkey is analyzed in this study by using ratio analyses. Similar studies are explained in the following section. Next section explains research methodology of the study. The rest sections present empirical findings and conclusion.

Similar studies about the impact of economic crisis on real sector

One of the studies including the economic crisis period between 1999 and 2001 examined the impact of financial leverage on 96 firms in four sectors of the real sector in Turkey for twelve periods (Gunay, 2002). By using t-tests and regression analysis, this study proved that the sectors with high leverage have lost more than the ones with low leverage after economic crisis. Another study, which focused on the same economic crisis in Turkey for the periods 1999 and 2002, found similar results (Dogan, 2005). Liquidity ratios, asset management ratios and profitability ratios were used in this study in order to examine the impact of economic crisis on Turkish real sector. The empirical findings of this study showed that average sales incomes of 100 manufacturing firms that are quoted in Istanbul Stock Exchange in 1997 are below their sales levels at the end of 2001.

There are also studies examining the impact of GEC on emerging markets. Yang and Young (2009) have examined the impact of GEC on South Korean economy. They have found that intensive capital outflows by foreign investors created a serious impact on this economy even though macroeconomic indicators of South Korea were very strong before the crisis. These sudden capital outflows are termed as "Systemic Sudden Stops" by Calvo, Isquierdo and Mejia (2008). Jacob and Chander (2009) also studied the impact of GEC on Indian economy. They have examined the periods between 2005 and 2009 for 192 firms in nine sectors of Indian real sector. They have found that GEC has not affected the real sector in India substantially. Countries that are dependent on commodities (e.g., South Africa) are also affected from GEC. As the economic crisis deepened at the end of 2008, platinum group of metal mining companies in South Africa were forced to lay-off about 10.000 employees, and foreign investments were also adversely affected (Te Velde, 2008). It is documented by Cali, Massa and Te Velde (2008) that foreign direct investment to countries such as Turkey declined by 40% in 2008.

Research methodology

In order to understand the impact of the GEC on the working capital components, thirteen ratios specifically related to working capital have been used in this analysis. The list of these ratios is as follows:

1. Current Ratio (CR)

2. Liquidity Ratio (LR)

3. Cash Ratio (CAR)

4. Inventory-to-Current Assets Ratio (ICAR)

5. Short Term Receivables-to-Current Assets Ratio (STRCAR)

6. Current Assets-to-Total Assets Ratio (CATAR)

7. Short Term Liabilities-to-Total Assets Ratio (STLTAR)

8. Short Term Liabilities-to-Total Liabilities Ratio (STLTLR)

9. Short Term Bank Loans- to- Short Term Liabilities Ratio (STBLSTLR)

10. Stock Turnover Rate (STR)

11. Receivables Turnover Rate

12. Working Capital Turnover Rate

13. Net Working Capital Turnover Rate

For evaluation of the listed ratios, 140 manufacturing companies traded in Istanbul Stock Exchange (ISE) are determined as the population of the study. The list of the company names, number of all companies in each sector, number of firms chosen for representation and the size of their capital are given in Table 2.

These companies are already classified in eight sectors by ISE managers. In order to represent each sector a total of 45 manufacturing companies have been randomly chosen, to form the sample, on condition that they deliver balance sheet and income statement in Excel format and have been traded continuously in ISE, between the first quarter of 2004 and third quarter of 2009. For this purpose a list of 140 ISE traded companies, downloaded from the ISE web site, have been used. In each sector, companies have been sorted according to their capital. In order to represent each sector, comparatively small, medium and large size companies have been identified.

Six companies out of twenty-one have been chosen from the Food, Beverages and Tobacco Sector. In order to represent the Textile, Wearing Apparel and Leather sector, five companies out of nine-teen have been chosen for evaluation. There are solely two companies belonging to Manufacturing Wood, Products of Wood and Furniture sector, both are included. Paper and Paper Products, Printing and Reproduction of Recorded Media sector is represented by six companies out of thirteen.

Seven chemicals, petroleum products, rubber & plastic products companies out of twenty-one represent the sector. Non-Metallic Mineral Products sector is represented by twenty-four companies in SEC. We have chosen five of them. Similarly, five companies have been chosen to represent Basic Metals sector which comprises fourteen companies under ISE. Six out of twenty-three companies under the title Fabricated Metal Products represent the sector in our research. Lastly, all three companies as listed in Other Manufacturing Sector in SEC take place in the research.

Most of researchers point Fall of 2008 as the beginning of the crisis. Therefore, the era of 2004-2007 is accepted as pre-crisis era and named I.Period. With respect to this logic, 2008-2009 as being the crisis era, is named II.Period.

However, due to coincidental facts, we feel lucky to determine precisely the beginning of the crisis as the second half of 2007. Therefore, we have another set of pre-crisis and crisis era. Under this assumption pre-crisis era comprises 14 quarters starting with the first quarter of 2004, ending with the second quarter of 2007. This is the III.Period. The last 9 quarters make up the IV.Period, continuing from the beginning of the third quarter of 2007 to the end of third quarter of 2009.

In this study we have 23 quarters, 45 companies and 13 ratios. Totally 13 455 formulas have been created by referring to several cells in the balance sheet and income statement tables of the companies. Calculated ratios have been evaluated via SPSS 17.0 by using normality test, paired samples t-test and non-parametric Mann-Whitney U-test. All results have been evaluated on p< 0.05 significance level. The thirteen hypotheses that are tested in this study can be seen below.

1. [H.sub.0]: Crisis era Current Ratio is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Current Ratio is significantly differing from pre-crisis era.

2. [H.sub.0]: Crisis era Liquidity Ratio is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Liquidity Ratio is significantly differing from pre-crisis era.

3. [H.sub.0]: Crisis era Cash Ratio is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Cash Ratio is significantly differing from pre-crisis era.

4. [H.sub.0]: Crisis era Inventory-to-Current Assets Ratio is not significantly differing from precrisis era.

[H.sub.1]: Crisis era Inventory-to-Current Assets Ratio is significantly differing from precrisis era.

5. [H.sub.0]: Crisis era Short Term Receivables-to Current Assets Ratio is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Short Term Receivables-to Current Assets Ratio is significantly differing from pre-crisis era.

6. [H.sub.0]: Crisis era Current Assets-to-Total Assets Ratio is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Current Assets-to-Total Assets Ratio is significantly differing from precrisis era.

7. [H.sub.0]: Crisis era Short Term Liabilities-to-Total Assets Ratio is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Short Term Liabilities-to-Total Assets Ratio is significantly differing from pre-crisis era.

8. [H.sub.0]: Crisis era Short Term Liabilities -to- Total Liabilities Ratio is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Short Term Liabilities -to- Total Liabilities Ratio is significantly differing from pre-crisis era.

9. [H.sub.0]: Crisis era Short Term Bank Loans -to- Short Term Liabilities Ratio is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Short Term Bank Loans -to- Short Term Liabilities Ratio is significantly differing from pre-crisis era.

10. [H.sub.0]: Crisis era Inventory Turnover Rate is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Inventory Turnover Rate is significantly differing from pre-crisis era.

11. [H.sub.0]: Crisis era Receivables Turnover Rate is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Receivables Turnover Rate is significantly differing from pre-crisis era.

12. [H.sub.0]: Crisis era Working Capital Turnover Rate is not significantly differing from precrisis era.

[H.sub.1]: Crisis era Working Capital Turnover Rate is significantly differing from pre-crisis era.

13. [H.sub.0]: Crisis era Net Working Capital Turnover Rate is not significantly differing from pre-crisis era.

[H.sub.1]: Crisis era Net Working Capital Turnover Rate is significantly differing from precrisis era.

Empirical findings

According to Kolmogorov-Smirnov Test, data have been normally distributed for all the periods and for all the ratios. Based on paired samples t-test and Mann Whitney u-test, thirteen hypotheses that are formed for the ratios related with the working capital of real sector are tested and the findings for each ratio are given below.

a. Current ratio

Under the assumption that pre-crisis era is straightly 2004-2007 and crisis era is 2008-2009; [H.sub.0] is accepted and [H.sub.1] rejected. This result does not show any difference under the assumption that the crisis really started at the beginning of the third quarter of 2007. Finally, the data have been tested for another time zone. In order to catch any immediate effect of the crisis, the last quarter of 2007 has been compared to the same quarter of 2008. Again, [H.sub.0] is accepted and [H.sub.1] rejected As a result, for the 45 ISE traded companies it is to be admitted that the crisis has no significant effect on current ratio.

b. Liquidity ratio (acid-test ratio)

Under the assumption that pre-crisis era is straightly 2004-2007 and crisis era is 2008-2009; [H.sub.0] is accepted and [H.sub.1] rejected. Under the assumption that the crisis really started at the beginning of the third quarter of 2007; [H.sub.0] is accepted and [H.sub.1] rejected. The comparison of the 4th quarter of 2007 with the 4th quarter of 2008 helps us in accepting [H.sub.0] and rejecting [H.sub.1]. It can be concluded that liquidity ratio for the 45 ISE traded companies has not been affected by the crisis.

c. Cash ratio

According to the results of the paired sample t-test and Mann-Whitney U test, under the assumption that pre-crisis era is 2004-2007 and crisis era is 2008-2009; [H.sub.0] has been accepted and [H.sub.1] rejected. Since same results are valid for the other periods mentioned above, it can be said that this crisis did not affect the cash ratio for the ISE traded 45 companies.

d. Inventory to current assets ratio

Paired samples t-test implies us to reject [H.sub.0] and accept [H.sub.1], for the pair of pre-crisis era as 2004-2007 and crisis era as 2008-2009. However, with the alternative definition of the periods, pre-crisis era ending at the beginning of the 3rd quarter of 2007, [H.sub.0] is accepted and [H.sub.1] is rejected. When the last quarters of the years 2007 and 2008 are compared, again we reject the [H.sub.0] and accept [H.sub.1]. Even though Mann-Whitney U test reveals that the crisis did not have any significant influence on inventory management, in the light of the other data, we may comment that inventory to current assets ratio of 45 companies traded in ISE has been affected. The comparison between the I.Period and the II.Period tells us that this is a positive impact. Sectors' average for this ratio is 32.40% before the crisis and 29.46% during the crisis. One explanation would be improved inventory management; another would be procurement/production following orders.

e. Short term receivables-to current assets ratio

According to paired samples t-test and Mann-Whitney U- test, the comparison of the I. period with the II. Period [H.sub.0] is accepted and [H.sub.1] is rejected. III. Period and IV. Period comparison implies us to accept [H.sub.0] and reject Hypothesis [H.sub.1]. The last quarters of 2007 and 2008 as a pair, again [H.sub.0] is accepted and [H.sub.1] is rejected. Thus, we comment this ratio is not significantly affected for ISE traded 45 companies.

f. Current assets-to-total assets ratio

For all of the pairs, namely [I.Period-II.Period], [III.Period-IV.Period] and [last quarters of 2007 and 2008], [H.sub.0] is accepted and [H.sub.1] is rejected according to paired samples t-test and Mann-Whitney U test. Since p value is above 0.05 meaning that there is no significant difference, we comment this ratio is not affected for ISE traded 45 companies.

g. Short term liabilities-to-total assets ratio

As the Hypotheses [H.sub.0] and [H.sub.1] have been tested with the help of paired samples t-test, for three sets of periods namely [I.Period-II.Period], [III.Period-IV.Period] and [last quarters of 2007 and 2008] we accept [H.sub.0] and reject [H.sub.1]. Mann-Whitney U test also gives the result that there is no significant difference between the pre-crisis era and crisis era ratios of the 45 ISE traded companies. With the data available and according to the result of the tests, short term liabilities-to-total assets ratio has been affected for a short period of time at the time the last crisis trod the stage and the effect faded in the course of time.

h. Short term liabilities-to-total liabilities ratio

Comments made about the tests' results of this ratio, resembles the above explained one's. Thus, for short term liabilities-to-total liabilities ratio [H.sub.0] is accepted and [H.sub.1] is rejected for all the periods mentioned in this study; it is interpreted that the ratio of 45 companies traded in ISE is not significantly affected.

i. Short term bank loans-to-short term liabilities ratio

Paired samples t-test imposes us to reject [H.sub.0] and accept [H.sub.1] for all periods of the study. Mann-Whitney U test results are in the same direction. There is a meaningful influence of the crisis on the pair of I.Period-II.Period. Similarly, under the assumption that the crisis era starts in the second half of 2007, the crisis has significant impact on this ratio. Before the crisis the ratio of the 45 companies analyzed in this study was 28.49% on the average. During the crisis it rose to 38.95%. In the light of this data we may comment that this ratio has been affected by the crisis.

j. Inventory turnover ratio

As can be followed from the relevant tables, the tests executed enable the acceptance of the [H.sub.0] and rejection of [H.sub.1] for all period pairs [I.Period-II.Period], [III.Period-IV.Period] and [last quarters of 2007 and 2008]

k. Receivables turnover ratio

This ratio is one of the few crisis affected ratios. Even though paired samples t-test shows no significant difference between any of the periods of this study and tells us to accept [H.sub.0] and reject [H.sub.1], Mann-Whitney U Test results differ. Under the assumption that the years between 2004-2007 comprise the pre-crisis era, and the years 2008-2009 are crisis era; [H.sub.0] is to be rejected and [H.sub.1] to be accepted. For the 45 companies traded in ISE, p has the value below 0.05, thus there is significant effect of the crisis on Receivables Turnover Rate. During the crisis receivables turnover ratio become 5.04, whereas it was 15.8 before the crisis. This means that trade receivables are collected at a slower pace.

l. Working capital turnover ratio

Paired samples t-test imposes us to accept [H.sub.0] and reject [H.sub.1] for the I.Period-II.Period and III.Period-IV.Period pairs, but it is just the opposite for the last quarters of the years 2007 and 2008. Thus we accept [H.sub.1] and reject [H.sub.0] for this specific period. On the other hand, Mann-Whitney U test tells us to reject [H.sub.0] and accept [H.sub.1] for the pair of I. Period--II. Period. As can be followed from Table 3, working capital turnover ratio was 1.61 and deteriorated to 1.45 during the crisis. With p value under 0.05 meaning significant difference before and during the crisis era, it is to be agreed upon the fact that working capital rate of 45 companies traded in ISE is impacted.

m. Net working capital turnover ratio

Whatever interpretation is done for the preceding ratio, it is not valid for the net working capital turnover ratio. For all the periods mentioned in this study, [H.sub.0], that the ratio is not significantly affected by the crisis is accepted. The result is supported both by paired samples t-test and Mann-Whitney U test. Therefore, it would not be wrong, commenting that the 2008 crisis has not affected this ratio of the 45 companies having been uninterruptedly traded in ISE since the first quarter of 2004.

According to the study on ISE, within the frame of the two statistical methods, significant but limited impact is identified in five ratios out of thirteen. Crisis affected ratios for 45 companies traded in ISE are summarized in Table 3.

Conclusion

This study found evidence that the recent crisis affected the ISE traded companies on a limited basis. Therefore, future research and study is recommended. First, the year 2009 is to be completed. Another set of research should follow including post-crisis era at the moment we decide this crisis is over.

As can be seen in Table 3, receivables turnover ratio is one of the most affected ratios among others. It was 15.18 times during the pre-crisis but it dropped to 5.04 during the crisis era. The reason for this important decline is related the drop in sales figures of real sector during the economic crisis.

Other ratios are not affected as much as receivables turnover ratio during the economic crisis. There are two important factors for this result. Interest rates dropped due to the decline in expected inflation during the GEC. The other reason is the credit easing during the economic crisis. As can be seen in Table 3, short term bank loan to short term liabilities ratio was 28.49% during the pre-crisis era but it increased to 38.95% during the crisis era. Since interest rates have declined and credit amount increased during the crisis, firms in the real sector responded to the impact of GEC by taking more debt from the banks.

Since capital outflows did not continue for a long period of time, capital inflows to Turkey have restarted, Turkish Lira did not appreciate too much against foreign currencies. Therefore, inflation is not affected too much from GEC. When unemployment figure jumped from 10.3% in the second period of 2008 to 15.8% in the first period of 2009, the inflation rate dropped from 10.61% in the second period of 2008 to 5.73% in the second period of 2009 due the decrease in the demand. Thus, central bank decreased the interest rate from 16.25% in the second period of 2008 to 8.75% in the second period of 2009. This has also affected interest rates of loans. As a result, this limited impact on the working capital of real sector is based on these positive developments (decrease in interest rates and increase in credit amount) in Turkish macro economy.

Today, there is too much hot money in the global economy. According to Chinese Vice Finance Minister Zhu Guangyao, the amount of hot money flowing around before GEC was 9 trillion dollar, and it is 10 trillion dollar after GEC (Forthe, 2010). This amount of money creates asset bubbles in all over the world. Federal Reserve is expected to initiate a second quantitative easing in order to boost growth. China struggles with inflation due to intensive capital inflows. Finally, some of the European countries (Ireland, Portuguese, Spain, and Greece) have debt problem. Since capital inflows restarted after GEC, it would not be wrong to say that the real sector of Turkey is not affected too much from the crisis. But same macro and micro financial results should not be expected in the future due this current global economic outlook. In other words, asset bubble can burst and most of the working capital ratios of real sector can be deeply affected in the future due to these important developments in the world economy. This is not only true for Turkey, but also for all the emerging economies.

If we compare the economic indicators presented in Table 1 with our empirical findings, it would not be wrong to argue that GEC did not affect the working capital of Turkish firms, due to the short term maturity characteristics of the economic crisis and the drop in the interest rates. When there were huge cash outflows during the economic crises in 1994 and 2001, interest rates and inflation both increased considerably. However, the interest rates and inflation decreased during GEC. Therefore, working capital of ISE traded Turkish firms is not affected too much, but this does not mean that the same economic results will occur in the future.

If firms do not want to encounter cash flow problems in the future, they need to be careful in managing their short-term assets and liabilities. Companies which manage their working capital optimally during times of recessions come out stronger after the recession period. Working capital management is one of the cornerstones of business continuity and acts as a hedge against tightening credit and access to additional capital. This study showed us that firms did not have important liquidity problems during the GEC, but this does not mean that capital inflows will go on in the future. For example, economic crisis in 1994 and 2001 in Turkey has shown us that firms, that managed their working capital poorly, had very difficult times during these economic crises.

Appendix
TABLE 1. TURKEY'S ECONOMIC INDICATORS (2007--2010)

Quarters              Yearly       CBRT     Dollar/
                    Inflation    Interest   Turkish
                    Rate (CPI)     Rate      Lira

2007 (4. Quarter)      8.39       15.75      1.16
2008 (1. Quarter)      9.15       15.25      1.32
2008 (2. Quarter)     10.61       16.25      1.23
2008 (3. Quarter)     11.13       16.75      1.26
2008 (4. Quarter)     10.06       15.00      1.53
2009 (1. Quarter)      7.89       10.50      1.67
2009 (2. Quarter)      5.73        8.75      1.54
2009 (3. Quarter)      5.27        7.25      1.50
2009 (4. Quarter)      6.53        6.50      1.52
2010 (1. Quarter)      9.56        6.50      1.52
2010 (2. Quarter)      8.37        6.25      1.58

Quarters             Yearly Current     Unemployment       GDP
                     Account Deficit        Rate       Growth Rate
                    (Million Dollars)

2007 (4. Quarter)         38.0              10.6           3.4
2008 (1. Quarter)         41.0              10.7           7.0
2008 (2. Quarter)         44.4              9.0            2.6
2008 (3. Quarter)         48.5              10.3           0.9
2008 (4. Quarter)         41.6              13.6          -7.0
2009 (1. Quarter)         31.3              15.8          -14.6
2009 (2. Quarter)         20.9              13.0          -7.6
2009 (3. Quarter)         15.4              13.4          -2.7
2009 (4. Quarter)         14.0              13.5           6.0
2010 (1. Quarter)         22.1              13.7          11.7
2010 (2. Quarter)         27.3              10.5          10.3

Source: Turkish Statistical Institution, Central Bank of the
Republic of Turkey (CBRT), Republic of Turkey Ministry of
Finance.

Note: CPI--Consumer Price Index; GDP--Gross Domestic Product.

TABLE 2. THE LIST OF MANUFACTURING INDUSTRY COMPANIES
TRADED IN ISE, CHOSEN FOR RATIO ANALYSIS

Chosen/   Capital (TL)   Name of the sector
Total *

6/21                     31--Food, Beverages And Tobacco

          450,000,000    Anadolu Efes Biracilik Ve Malt Sanayii

          268,650,000    Ulker Biskiivi Sanayi

          100,000,000    Tukas Gida Sanayi Ve Ticaret Izmir

           44,951,051    Pinar Sut Mamulleri Sanayii Izmir

           27,639,480    Altinyag Kombinalari

           22,000,000    Seker Pili? Ve Yem Sanayi Ticaret

5/19                     32--Textile, Wearing Apparel And Leather

          194,529,076    Kordsa Global Endiistriyel Iplik Ve Kord Bezi
                         San. Ve Tic.

          160,000,000    Vakko Tekstil Ve Hazir Giyim Sanayi
                         Isletmeleri

           30,014,121    Ak-Al Tekstil Sanayi

           17,010,000    Yatas Yatak Ve Yorgan Sanayi Ticaret

           5,400,000     Derimod Konfeksiyon Ayakkabi-Deri Sanayi Ve
                         Ticaret

2/2                      33--Manufacture Of Wood, Products Of Wood &
                         Furniture

           58,631,040    Gentas Genel Metal Sanayi Ve Ticaret

           50,000,000    Kelebek Mobilya Sanayi Ve Ticaret

6/13                     34--Paper And Paper Products, Printing &
                         Reproduction Of Recorded Media

          460,000,000    Hurriyet Gazetecilik Ve Matbaacilik

          100,000,000    Tire Kutsan Oluklu Mukavva, Kutu Ve Kagit
                         Sanayi Tire

           65,000,000    Viking Kagit Ve Seluloz Izmir

           52,500,000    Alkim Kagit Sanayi Ve Ticaret

           9,000,000     Bak Ambalaj Sanayi Ve Ticaret

           4,800,000     Kaplamin Ambalaj Sanayi Ve Ticaret Izmir

7/21                     35--Chemicals, Petroleum Products, Rubber &
                         Plastic Products

          577,500,000    Petrol Ofisi Ankara

          548,208,000    Eis Eczacibasi Ma?, Sinai Ve Finansal
                         Yatirimlar San Ve Tic

          300,000,000    Aygaz

          185,000,000    Aksa Akrilik Kimya Sanayii

          144,000,000    Deva Holding

           75,857,033    Hektas Ticaret Turk

           7,441,875     Brisa Bridgestone Sabanci Lastik San. Ve Tic.

5/24                     36--Non-Metalic Mineral Products

          580,000,000    Trakya Cam Sanayi

          191,447,068    Akpansa Cimento Sanayi Ve Ticaret

          112,830,900    Eczacibasi Yapi Gerepleri Sanayi Ve Ticaret

           28,512,000    Kutahya Porselen Sanayii Kutahya

           10,500,000    Haznedar Refrakter Sanayi

5/14                     37--Basic Metals

          1,148,812,50   Eregli Demir Ve Celik Fabrikalari
               0

          100,975,680    Cemtas Celik Makina Sanayi Ve Ticaret

           34,000,000    Fenis Aluminyum Sanayi Ve Ticaret

           16,500,000    Celik Halat Ve Tel Sanayii

           5,220,000     Erbosan Erciyas Boru San. Ve Tic. Kayseri

6/23                     38--Fabricated Metal Products

          675,728,205    Arpelik

          500,000,000    Tofas Turk Otomobil Fabrikasi

          335,456,275    Vestel Elektronik Sanayi Ve Ticaret

          112,233,652    Turk Prysmian Kablo Ve Sistemleri Mudanya

           54,000,000    Turk Demir Dokum Fabrikalari

           15,000,000    Klimasan Klima Sanayi Ve Ticaret

3/3                      39--Other Manufacturing

           80,000,000    Goldas Kuyumculuk Sanayi Ithalat Ve Ihr

           7,875,000     Adel Kalemcilik Ticaret Ve Sanayi

           7,250,000     Serve Kirtasiye Sanayi Ve Ticaret

Note: * The 1st number, 1st column shows the number of companies
chosen from the sector, 2nd number is the total of sector;
Companies chosen make up 32.4% of 140 companies traded in ISE.
(45/140=0.324)

TABLE 3. AFFECTED WORKING CAPITAL RATIOS

Affected ratios                Pre-crisis era   Crisis era

Inventory Ratio                    32.40%         29.46%

Short Term Bank Loans to           28.49%         38.95%
Short Term Liabilities Ratio

Inventory Turnover Ratio         4.88 times     6.52 times

Receivables Turnover Ratio      15.18 times     5.04 times

Working Capital Turnover         1.61 times     1.45 times
Ratio

TABLE 4. RATIO AVERAGES FOR 45 ISE TRADED COMPANIES

                                             2004-     2008-     2004-
                                             2007      2009     2007 *
                                            Average   Average   Average

Current Ratio      Current Assets/ST        203.97%   205.33%   201.94%
                   Liabilities

Liquidity Ratio    (Current Assets-         134.40%   134.29%   133.58%
                   Inventory-Prepaid
                   Expenses-Other Current
                   Assets)/Short Term
                   Liabilities

Cash Ratio         (Liquid Assets +         41.69%    31.48%    43.61%
                   Securities)/Short Term
                   Liabilities

Inventory Ratio    Inventory/Current        32.40%    29.46%    32.27%
                   Assets

S.T.               Short Term               51.19%    51.52%    51.01%
Receivables        Receivables/Current
Ratio              Assets

Current Assets     Current Assets/Total     54.74%    56.37%    54.36%
Ratio              Assets

S.T. Liabilities   ST Liabilities/Total     33.88%    37.07%    34.01%
Ratio 1            Assets

S.T. Liabilities   ST Liabilities/Total     73.74%    74.22%    73.73%
Ratio 2            Liabilities

S.T. Liabilities   Short Term Bank Loans/   28.49%    38.95%    28.24%
Ratio 3            S.T. Liabilities

Inventory          Cost of Goods Sold/       4.88      6.52      4.58
Turnover Ratio     Inventory

Receivables        Net Sales/(ST Trade       15.18     5.04      9.13
Turnover Ratio     Receivables + Long
                   Term Trade
                   Receivables)

Work. Cap. Turn.   Net Sales/Current         1.61      1.45      1.51
Ratio              Assets

Net Work. Cap.     Net Sales/                2.57      1.01      2.02
Turn. Ratio        (Current Assets--Short
                   Term Liabilities)

                                            2007 **-   All Years'
                                              2009      Average
                                            Average

Current Ratio      Current Assets/ST        208.19%     204.39%
                   Liabilities

Liquidity Ratio    (Current Assets-         135.58%     134.36%
                   Inventory-Prepaid
                   Expenses-Other Current
                   Assets)/Short Term
                   Liabilities

Cash Ratio         (Liquid Assets +          30.77%      38.58%
                   Securities)/Short Term
                   Liabilities

Inventory Ratio    Inventory/Current         30.31%      31.50%
                   Assets

S.T.               Short Term                51.73%      51.29%
Receivables        Receivables/Current
Ratio              Assets

Current Assets     Current Assets/Total      56.59%      55.23%
Ratio              Assets

S.T. Liabilities   ST Liabilities/Total      36.15%      34.85%
Ratio 1            Assets

S.T. Liabilities   ST Liabilities/Total      74.13%      73.89%
Ratio 2            Liabilities

S.T. Liabilities   Short Term Bank Loans/    37.02%      31.67%
Ratio 3            S.T. Liabilities

Inventory          Cost of Goods Sold/        6.62        5.38
Turnover Ratio     Inventory

Receivables        Net Sales/(ST Trade       16.71       12.09
Turnover Ratio     Receivables + Long
                   Term Trade
                   Receivables)

Work. Cap. Turn.   Net Sales/Current          1.64        1.56
Ratio              Assets

Net Work. Cap.     Net Sales/                 2.20        2.09
Turn. Ratio        (Current Assets--Short
                   Term Liabilities)

Source: All the information in the table is based
on the data downloaded from ISE web site.

Note: *--End of the second quarter;
**--From the beginning of the third quarter.

TABLE 5. THE SECTOR SPECIFIC AVERAGES OF RATIOS FOR THE DEFINED PERIODS

Sectors                                      2004-     2008-     2004-
                                             2007      2009     2007 *
                                            Average   Average   Average

CURRENT RATIO (percentages)

Food, beverages and tobacco                 123.80    110.08    122.82

Textile, Wearing Apparel and Leather        198.82    227.92    200.68

Manufacture of Wood, Products of Wood &     334.55    417.17    314.43
Furniture

Paper and Paper Products, Printing &        178.45    159.67    177.30
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and   224.52    218.46    217.58
Plastic Products

Non-metallic Mineral Products               203.15    176.75    209.12

Basic Metals                                301.97    333.86    297.91

Fabricated Metal Products                   146.35    130.04    148.42

Other Manufacturing                         242.29    261.59    235.16

LIQUIDITY RATIO (percentages)

Food, beverages and tobacco                  79.15     70.02     78.86

Textile, Wearing Apparel and Leather        130.51    153.46    131.62

Manufacture of Wood, Products of Wood &     226.22    245.09    215.61
Furniture

Paper and Paper Products, Printing          124.74    114.45    123.69
&Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and   156.33    154.53    149.95
Plastic Products

Non-metallic Mineral Products               133.34    100.73    138.69

Basic Metals                                193.72    217.64    192.39

Fabricated Metal Products                   100.22     89.24    102.04

Other Manufacturing                         129.54    156.58    129.75

CASH RATIO (percentages)

Food, beverages and tobacco                  13.57     12.85     13.76

Textile, Wearing Apparel and Leather         29.61     26.77     32.00

Manufacture of Wood, Products of Wood &     286.28     71.07    317.22
Furniture

Paper and Paper Products, Printing &         23.85     27.49     24.34
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    49.06     49.60     47.30
Plastic Products

Non-metallic Mineral Products                35.79     19.41     38.75

Basic Metals                                 41.90     59.48     42.73

Fabricated Metal Products                    21.88     14.88     22.97

Other Manufacturing                          22.45     22.47     20.77

INVENTORY/CURRENT ASSETS (percentages)

Food, beverages and tobacco                  34.86     32.39     34.86

Textile, Wearing Apparel and Leather         33.92     29.27     34.42

Manufacture of Wood, Products of Wood &      38.46     48.58     38.08
Furniture

Paper and Paper Products, Printing &         28.64     23.66     28.60
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    26.39     23.57     26.43
Plastic Products

Non-metallic Mineral Products                35.28     40.05     34.83

Basic Metals                                 33.51     30.73     33.37

Fabricated Metal Products                    28.32     24.69     28.03

Other Manufacturing                          43.96     26.25     42.95

SHORT TERM RECEIVABLES/CURRENT ASSETS (percentages)

Food, beverages and tobacco                  52.10     47.41     51.74

Textile, Wearing Apparel and Leather         50.05     58.34     48.62

Manufacture of Wood, Products of Wood &      41.97     34.59     41.58
Furniture

Paper and Paper Products, Printing &         61.16     56.11     61.36
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    50.38     46.73     50.38
Plastic Products

Non-metallic Mineral Products                46.24     46.70     45.84

Basic Metals                                 48.41     48.70     48.34

Fabricated Metal Products                    53.99     55.44     53.88

Other Manufacturing                          46.69     66.46     47.90

CURRENT ASSETS/TOTAL ASSETS (percentages)

Food, beverages and tobacco                  44.77     44.09     43.01

Textile, Wearing Apparel and Leather         63.33     68.37     62.37

Manufacture of Wood, Products of Wood &      64.77     60.36     65.25
Furniture

Paper and Paper Products, Printing &         38.94     39.35     39.16
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    47.53     49.95     47.20
Plastic Products

Non-metallic Mineral Products                47.37     50.52     47.08

Basic Metals                                 64.72     64.71     65.01

Fabricated Metal Products                    67.72     66.63     67.90

Other Manufacturing                          71.75     82.63     70.89

SHORT TERM LIABILITIES/TOTAL ASSETS (percentages)

Food, Beverages and Tobacco                  38.15     45.47     38.60

Textile, Wearing Apparel and Leather         34.69     39.73     33.62

Manufacture of Wood, Products of Wood &      63.28     30.64     67.25
Furniture

Paper and Paper Products, Printing &         24.52     31.50     24.66
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    25.28     26.87     26.01
Plastic Products

Non-metallic Mineral Products                28.62     34.93     27.98

Basic Metals                                 27.75     27.24     28.23

Fabricated Metal Products                    47.41     52.36     46.93

Other Manufacturing                          35.03     44.47     34.57

SHORT TERM LIABILITIES/TOTAL LIABILITIES (percentages)

Food, beverages and tobacco                  67.55     74.62     67.49

Textile, Wearing Apparel and Leather         74.91     79.11     74.15

Manufacture of Wood, Products of Wood &      86.72     88.34     86.69
Furniture

Paper and Paper Products, Printing &         67.99     64.44     67.14
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    71.56     74.30     71.66
Plastic Products

Non-metallic Mineral Products                71.88     69.13     72.27

Basic Metals                                 70.12     69.66     70.45

Fabricated Metal Products                    81.09     75.65     81.54

Other Manufacturing                          86.59     88.37     87.11

SHORT TERM BANK LOANS/SHORT TERM LIABILITIES (percentages)

Food, beverages and tobacco                  35.53     41.91     37.01

Textile, Wearing Apparel and Leather         27.47     43.37     27.07

Manufacture of Wood, Products of Wood &      29.25     32.90     29.25
Furniture

Paper and Paper Products, Printing &         35.52     46.01     35.21
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    23.82     34.14     24.68
Plastic Products

Non-metallic Mineral Products                34.17     55.47     31.26

Basic Metals                                 21.45     30.07     21.76

Fabricated Metal Products                    23.19     36.17     21.52

Other Manufacturing                          25.28     19.66     25.49

INVENTORY TURNOVER RATE (times)

Food, beverages and tobacco                  5.56      8.07      5.24

Textile, Wearing Apparel and Leather         5.48      2.99      4.77

Manufacture of Wood, Products of Wood &      2.11      1.27      2.11
Furniture

Paper and Paper Products, Printing &         5.60      5.76      5.29
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    6.29      5.60      5.96
Plastic Products

Non-metallic Mineral Products                2.75      2.13      2.61

Basic Metals                                 4.67      5.19      4.33

Fabricated Metal Products                    4.01      3.99      3.84

Other Manufacturing                          5.25      31.08     5.11

RECEIVABLES TURNOVER RATE (times)

Food, beverages and tobacco                  12.16     13.57     11.30

Textile, Wearing Apparel and Leather         3.24      2.10      3.14

Manufacture of Wood, Products of Wood &      2.62      2.53      2.59
Furniture

Paper and Paper Products, Printing &         3.02      2.55      2.82
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    4.30      3.42      4.13
Plastic Products

Non-metallic Mineral Products                30.35     11.11     26.75

Basic Metals                                 8.31      2.67      6.20

Fabricated Metal Products                    3.55      2.23      3.33

Other Manufacturing                         108.60     2.78      30.47

WORKING CAPITAL TURNOVER RATE (times)

Food, beverages and tobacco                  2.35      2.99      2.22

Textile, Wearing Apparel and Leather         1.22      0.86      1.15

Manufacture of Wood, Products of Wood &      1.10      0.77      1.10
Furniture

Paper and Paper Products, Printing &         1.59      1.37      1.50
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    1.85      1.32      1.77
Plastic Products

Non-metallic Mineral Products                1.28      1.27      1.13

Basic Metals                                 1.12      0.89      1.05

Fabricated Metal Products                    1.24      1.43      1.16

Other Manufacturing                          2.63      1.56      2.42

NET WORKING CAPITAL TURNOVER RATE (times)

Food, beverages and tobacco                  -1.50     4.76      -2.66

Textile, Wearing Apparel and Leather         3.05      2.80      2.77

Manufacture of Wood, Products of Wood &      2.39      1.63      1.95
Furniture

Paper and Paper Products, Printing &         2.09      0.98      2.04
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    -0.10     8.26      -1.00
Plastic Products

Non-metallic Mineral Products                5.87     -22.79     5.54

Basic Metals                                 2.25      2.09      2.14

Fabricated Metal Products                    5.14      3.30      4.56

Other Manufacturing                          7.08      6.56      6.06

Sectors                                     2007 **-     All
                                              2009     Years'
                                            Average    Average

CURRENT RATIO (percentages)

Food, beverages and tobacco                  114.66    119.62

Textile, Wearing Apparel and Leather         218.56    207.68

Manufacture of Wood, Products of Wood &      430.10    359.69
Furniture

Paper and Paper Products, Printing &         165.62    172.73
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    230.60    222.68
Plastic Products

Non-metallic Mineral Products                173.32    195.11

Basic Metals                                 333.09    311.68

Fabricated Metal Products                    130.43    141.38

Other Manufacturing                          268.40    248.17

LIQUIDITY RATIO (percentages)

Food, beverages and tobacco                  72.50      76.37

Textile, Wearing Apparel and Leather         146.62    137.49

Manufacture of Wood, Products of Wood &      257.41    231.96
Furniture

Paper and Paper Products, Printing           118.36    121.61
&Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    164.85    155.78
Plastic Products

Non-metallic Mineral Products                99.66     123.41

Basic Metals                                 214.39    201.00

Fabricated Metal Products                    88.84      96.88

Other Manufacturing                          150.25    137.77

CASH RATIO (percentages)

Food, beverages and tobacco                  12.71      13.35

Textile, Wearing Apparel and Leather         23.69      28.75

Manufacture of Wood, Products of Wood &      70.77     220.78
Furniture

Paper and Paper Products, Printing &         25.91      24.96
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    52.21      49.22
Plastic Products

Non-metallic Mineral Products                18.44      30.80

Basic Metals                                 54.29      47.25

Fabricated Metal Products                    14.74      19.75

Other Manufacturing                          25.08      22.46

INVENTORY/CURRENT ASSETS (percentages)

Food, beverages and tobacco                  32.93      34.11

Textile, Wearing Apparel and Leather         29.52      32.50

Manufacture of Wood, Products of Wood &      46.93      41.54
Furniture

Paper and Paper Products, Printing &         24.83      27.13
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    24.13      25.53
Plastic Products

Non-metallic Mineral Products                39.69      36.73

Basic Metals                                 31.55      32.66

Fabricated Metal Products                    25.94      27.21

Other Manufacturing                          31.76      38.57

SHORT TERM RECEIVABLES/CURRENT ASSETS (percentages)

Food, beverages and tobacco                  49.01      50.67

Textile, Wearing Apparel and Leather         58.72      52.57

Manufacture of Wood, Products of Wood &      36.84      39.72
Furniture

Paper and Paper Products, Printing &         56.93      59.63
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    47.54      49.27
Plastic Products

Non-metallic Mineral Products                47.22      46.38

Basic Metals                                 48.75      48.50

Fabricated Metal Products                    55.29      54.43

Other Manufacturing                          60.18      52.71

CURRENT ASSETS/TOTAL ASSETS (percentages)

Food, beverages and tobacco                  46.99      44.57

Textile, Wearing Apparel and Leather         68.75      64.87

Manufacture of Wood, Products of Wood &      60.59      63.43
Furniture

Paper and Paper Products, Printing &         38.90      39.06
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    49.92      48.26
Plastic Products

Non-metallic Mineral Products                50.27      48.33

Basic Metals                                 64.26      64.71

Fabricated Metal Products                    66.60      67.39

Other Manufacturing                          81.55      75.06

SHORT TERM LIABILITIES/TOTAL ASSETS (percentages)

Food, Beverages and Tobacco                  43.15      40.38

Textile, Wearing Apparel and Leather         40.27      36.22

Manufacture of Wood, Products of Wood &      31.71      53.34
Furniture

Paper and Paper Products, Printing &         29.73      26.65
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    25.38      25.76
Plastic Products

Non-metallic Mineral Products                34.52      30.54

Basic Metals                                 26.60      27.59

Fabricated Metal Products                    52.02      48.92

Other Manufacturing                          43.09      37.90

SHORT TERM LIABILITIES/TOTAL LIABILITIES (percentages)

Food, beverages and tobacco                  73.14      69.70

Textile, Wearing Apparel and Leather         79.36      76.19

Manufacture of Wood, Products of Wood &      88.03      87.22
Furniture

Paper and Paper Products, Printing &         66.55      66.91
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    73.52      72.39
Plastic Products

Non-metallic Mineral Products                69.14      71.04

Basic Metals                                 69.24      69.98

Fabricated Metal Products                    76.15      79.43

Other Manufacturing                          87.18      87.14

SHORT TERM BANK LOANS/SHORT TERM LIABILITIES (percentages)

Food, beverages and tobacco                  38.20      37.47

Textile, Wearing Apparel and Leather         40.46      32.31

Manufacture of Wood, Products of Wood &      32.10      30.36
Furniture

Paper and Paper Products, Printing &         44.17      38.71
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and    30.51      26.96
Plastic Products

Non-metallic Mineral Products                55.27      40.65

Basic Metals                                 27.67      24.07

Fabricated Metal Products                    35.88      27.14

Other Manufacturing                          20.58      23.57

INVENTORY TURNOVER RATE (times)

Food, beverages and tobacco                   8.01      6.32

Textile, Wearing Apparel and Leather          4.66      4.73

Manufacture of Wood, Products of Wood &       1.47      1.86
Furniture

Paper and Paper Products, Printing &          6.20      5.65
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and     6.27      6.08
Plastic Products

Non-metallic Mineral Products                 2.48      2.56

Basic Metals                                  5.61      4.83

Fabricated Metal Products                     4.26      4.00

Other Manufacturing                          25.56      13.11

RECEIVABLES TURNOVER RATE (times)

Food, beverages and tobacco                  14.58      12.59

Textile, Wearing Apparel and Leather          2.50      2.89

Manufacture of Wood, Products of Wood &       2.60      2.59
Furniture

Paper and Paper Products, Printing &          2.95      2.87
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and     3.88      4.03
Plastic Products

Non-metallic Mineral Products                20.98      24.50

Basic Metals                                  7.21      6.60

Fabricated Metal Products                     2.87      3.15

Other Manufacturing                          147.83     76.39

WORKING CAPITAL TURNOVER RATE (times)

Food, beverages and tobacco                   3.04      2.54

Textile, Wearing Apparel and Leather          1.05      1.11

Manufacture of Wood, Products of Wood &       0.84      1.00
Furniture

Paper and Paper Products, Printing &          1.57      1.52
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and     1.57      1.69
Plastic Products

Non-metallic Mineral Products                 1.51      1.28

Basic Metals                                  1.05      1.05

Fabricated Metal Products                     1.50      1.29

Other Manufacturing                           2.14      2.31

NET WORKING CAPITAL TURNOVER RATE (times)

Food, beverages and tobacco                   5.17      0.41

Textile, Wearing Apparel and Leather          3.29      2.97

Manufacture of Wood, Products of Wood &       2.48      2.16
Furniture

Paper and Paper Products, Printing &          1.29      1.75
Reproduction of Recorded Media

Chemicals, Petroleum Products, Rubber and     7.81      2.45
Plastic Products

Non-metallic Mineral Products                -15.91     -2.85

Basic Metals                                  2.29      2.20

Fabricated Metal Products                     4.61      4.58

Other Manufacturing                           8.27      6.92

Source: All the information in the table is based
on the data downloaded from ISE web site.

Note: *--End of the second quarter; **--From the
beginning of the third quarter.

TABLE 6. PAIRED SAMPLES T-TEST RESULTS

                                           Paired Differences

                                       Mean       Std.      Std. Error
                                                Deviation      Mean

Paired Samples Test Results (I.Period--II.Period)

Pair 1    Current Ratio (Before      -.01352     .83427       .12437
          Crisis)--Current Ratio
          (After Crisis)

Pair 2    Liquidity Ratio (Before     .00106     .68274       .10178
          Crisis)--Liquidity Ratio
          (After Crisis)

Pair 3    Cash Ratio (Before         .101567     .747079     .111368
          Crisis)--Cash Ratio
          (After Crisis)

Pair 4    Inventory Ratio (Before     .02941     .10302       .01536
          Crisis)--Inventory Ratio
          (After Crisis)

Pair 5    S.T. Receivables Ratio     -.00321     .13105       .01954
          (Before Crisis)--S.T.
          Receivables Ratio (After
          Crisis)

Pair 6    Current Assets Ratio       -.01634     .09021       .01345
          (Before Crisis)--Current
          Assets Ratio (After
          Crisis)

Pair 7    S.T.Liabilities Ratio 1    -.03196     .13546       .02019
          (Before Crisis)--
          S.T.Liabilities Rate
          (After Crisis)

Pair 8    S.T.Liabilities Ratio 2    -.00473     .11894       .01773
          (Before Crisis)--
          S.T.Liabilities Ratio 2
          (After Crisis)

Pair 9    S.T.Liabilities Ratio 3    -.10464     .14996       .02235
          (Before Crisis)--
          S.T.Liabilities Ratio 3
          (After Crisis)

Pair 10   Inventory Turnover Ratio   -1.64295   12.05646     1.79727
          (Before Crisis)--
          Inventory Turnover Ratio
          (After Crisis)

Pair 11   Receivables Turn. Ratio    10.13658   49.03029     7.30900
          (Before Crisis)--
          Receivables Turn. Ratio
          (After Crisis)

Pair 12   Work. Cap. Turn. Ratio      .15494     1.12560      .16779
          (Before Crisis)--Work.
          Cap. Turn. Ratio (After
          Crisis)

Pair 13   Net Work. Cap. Turn.       1.55701    21.30566     3.17606
          Ratio (Before Crisis)--
          Net Work. Cap. Turn.
          Ratio (After Crisis)

Paired Samples Results (III.Period--IV.Period)

Pair 1    Current Ratio (Before      -.06254     .82495       .12298
          Crisis)--Current Ratio
          (After Crisis)

Pair 2    Liquidity Ratio (Before    -.02000     .65103       .09705
          Crisis)--Liquidity Ratio
          (After Crisis)

Pair 3    Cash Ratio (Before          .12772     .83782       .12489
          Crisis)--Cash Ratio
          (After Crisis)

Pair 4    Inventory Ratio (Before     .01957     .09054       .01350
          Crisis)--Inventory Ratio
          (After Crisis)

Pair 5    S.T. Receivables Ratio     -.00643     .12621       .01881
          (Before Crisis)--S.T.
          Receivables Ratio (After
          Crisis)

Pair 6    Current Assets Ratio       -.02230     .09336       .01392
          (Before Crisis)--Current
          Assets Ratio (After
          Crisis)

Pair 7    S.T.Liabilities Ratio 1    -.02135     .14044       .02094
          (Before Crisis)--
          S.T.Liabilities Rate
          (After Crisis)

Pair 8    S.T.Liabilities Ratio 2    -.00403     .12363       .01843
          (Before Crisis)--
          S.T.Liabilities Ratio 2
          (After Crisis)

Pair 9    S.T.Liabilities Ratio 3    -.08787     .14567       .02171
          (Before Crisis)--
          S.T.Liabilities Ratio 3
          (After Crisis)

Pair 10   Inventory Turnover Ratio   -2.04766    9.40632     1.40221
          (Before Crisis)--
          Inventory Turnover Ratio
          (After Crisis)

Pair 11   Receivables Turn. Ratio    -7.57791   52.68473     7.85378
          (Before Crisis)--
          Receivables Turn. Ratio
          (After Crisis)

Pair 12   Work. Cap. Turn. Ratio     -.13478     .89501       .13342
          (Before Crisis)--Work.
          Cap. Turn. Ratio (After
          Crisis)

Pair 13   Net Work. Cap. Turn.       -.17989    17.77344     2.64951
          Ratio (Before Crisis)--
          Net Work. Cap. Turn.
          Ratio (After Crisis)

Paired Samples Results (2007 4. Quarter--2008 4. Quarter)

Pair 1    Current Ratio (Before       .02724     1.05326      .15701
          Crisis)--Current Ratio
          (After Crisis)

Pair 2    Liquidity Ratio (Before    -.02227     .89276       .13308
          Crisis)--Liquidity Ratio
          (After Crisis)

Pair 3    Cash Ratio (Before         -.12814     .52694       .07855
          Crisis)--Cash Ratio
          (After Crisis)

Pair 4    Inventory Ratio (Before     .03830     .11176       .01666
          Crisis)--Inventory Ratio
          (After Crisis)

Pair 5    S.T. Receivables Ratio      .02982     .15763       .02350
          (Before Crisis)--S.T.
          Receivables Ratio (After
          Crisis)

Pair 6    Current Assets Ratio        .00761     .13607       .02028
          (Before Crisis)--Current
          Assets Ratio (After
          Crisis)

Pair 7    S.T.Liabilities Ratio 1    -.04330     .10854       .01618
          (Before Crisis)--
          S.T.Liabilities Rate
          (After Crisis)

Pair 8    S.T.Liabilities Ratio 2     .03363     .31875       .04752
          (Before Crisis)--
          S.T.Liabilities Ratio 2
          (After Crisis)

Pair 9    S.T.Liabilities Ratio 3    -.08787     .18751       .02795
          (Before Crisis)--
          S.T.Liabilities Ratio 3
          (After Crisis)

Pair 10   Inventory Turnover Ratio   -3.03448   21.44668     3.19708
          (Before Crisis)--
          Inventory Turnover Ratio
          (After Crisis)

Pair 11   Receivables Turn. Ratio    56.05895   310.22585    46.24574
          (Before Crisis)--
          Receivables Turn. Ratio
          (After Crisis)

Pair12    Work. Cap. Turn. Ratio      .38033     1.14030      .16999
          (Before Crisis)--Work.
          Cap. Turn. Ratio (After
          Crisis)

Pair 13   Net Work. Cap. Turn.       8.09760    34.69883     5.17260
          Ratio (Before Crisis)--
          Net Work. Cap. Tur Ratio
          (After Crisis)

                                     Paired Differences

                                       95% Confidence
                                       Interval of the
                                          Difference

                                      Lower       Upper

Paired Samples Test Results (I.Period--II.Period)

Pair 1    Current Ratio (Before      -.26416     .23712
          Crisis)--Current Ratio
          (After Crisis)

Pair 2    Liquidity Ratio (Before    -.20405     .20618
          Crisis)--Liquidity Ratio
          (After Crisis)

Pair 3    Cash Ratio (Before         -.122880    .326015
          Crisis)--Cash Ratio
          (After Crisis)

Pair 4    Inventory Ratio (Before    -.00155     .06036
          Crisis)--Inventory Ratio
          (After Crisis)

Pair 5    S.T. Receivables Ratio     -.04259     .03616
          (Before Crisis)--S.T.
          Receivables Ratio (After
          Crisis)

Pair 6    Current Assets Ratio       -.04344     .01076
          (Before Crisis)--Current
          Assets Ratio (After
          Crisis)

Pair 7    S.T.Liabilities Ratio 1    -.07266     .00874
          (Before Crisis)--
          S.T.Liabilities Rate
          (After Crisis)

Pair 8    S.T.Liabilities Ratio 2    -.04046     .03101
          (Before Crisis)--
          S.T.Liabilities Ratio 2
          (After Crisis)

Pair 9    S.T.Liabilities Ratio 3    -.14969     -.05958
          (Before Crisis)--
          S.T.Liabilities Ratio 3
          (After Crisis)

Pair 10   Inventory Turnover Ratio   -5.26511    1.97921
          (Before Crisis)--
          Inventory Turnover Ratio
          (After Crisis)

Pair 11   Receivables Turn. Ratio    -4.59375   24.86690
          (Before Crisis)--
          Receivables Turn. Ratio
          (After Crisis)

Pair 12   Work. Cap. Turn. Ratio     -.18323     .49310
          (Before Crisis)--Work.
          Cap. Turn. Ratio (After
          Crisis)

Pair 13   Net Work. Cap. Turn.       -4.84392    7.95794
          Ratio (Before Crisis)--
          Net Work. Cap. Turn.
          Ratio (After Crisis)

Paired Samples Results (III.Period--IV.Period)

Pair 1    Current Ratio (Before      -.31038     .18530
          Crisis)--Current Ratio
          (After Crisis)

Pair 2    Liquidity Ratio (Before    -.21559     .17559
          Crisis)--Liquidity Ratio
          (After Crisis)

Pair 3    Cash Ratio (Before         -.12399     .37942
          Crisis)--Cash Ratio
          (After Crisis)

Pair 4    Inventory Ratio (Before    -.00763     .04677
          Crisis)--Inventory Ratio
          (After Crisis)

Pair 5    S.T. Receivables Ratio     -.04435     .03149
          (Before Crisis)--S.T.
          Receivables Ratio (After
          Crisis)

Pair 6    Current Assets Ratio       -.05034     .00575
          (Before Crisis)--Current
          Assets Ratio (After
          Crisis)

Pair 7    S.T.Liabilities Ratio 1    -.06354     .02084
          (Before Crisis)--
          S.T.Liabilities Rate
          (After Crisis)

Pair 8    S.T.Liabilities Ratio 2    -.04118     .03311
          (Before Crisis)--
          S.T.Liabilities Ratio 2
          (After Crisis)

Pair 9    S.T.Liabilities Ratio 3    -.13164     -.04411
          (Before Crisis)--
          S.T.Liabilities Ratio 3
          (After Crisis)

Pair 10   Inventory Turnover Ratio   -4.87363    .77831
          (Before Crisis)--
          Inventory Turnover Ratio
          (After Crisis)

Pair 11   Receivables Turn. Ratio    -23.4062    8.25033
          (Before Crisis)--
          Receivables Turn. Ratio
          (After Crisis)

Pair 12   Work. Cap. Turn. Ratio     -.40367     .13411
          (Before Crisis)--Work.
          Cap. Turn. Ratio (After
          Crisis)

Pair 13   Net Work. Cap. Turn.       -5.51963    5.15984
          Ratio (Before Crisis)--
          Net Work. Cap. Turn.
          Ratio (After Crisis)

Paired Samples Results (2007 4. Quarter--2008 4. Quarter)

Pair 1    Current Ratio (Before      -.28919     .34367
          Crisis)--Current Ratio
          (After Crisis)

Pair 2    Liquidity Ratio (Before    -.29048     .24595
          Crisis)--Liquidity Ratio
          (After Crisis)

Pair 3    Cash Ratio (Before         -.28645     .03017
          Crisis)--Cash Ratio
          (After Crisis)

Pair 4    Inventory Ratio (Before     .00473     .07188
          Crisis)--Inventory Ratio
          (After Crisis)

Pair 5    S.T. Receivables Ratio     -.01754     .07718
          (Before Crisis)--S.T.
          Receivables Ratio (After
          Crisis)

Pair 6    Current Assets Ratio       -.03327     .04849
          (Before Crisis)--Current
          Assets Ratio (After
          Crisis)

Pair 7    S.T.Liabilities Ratio 1    -.07591     -.01069
          (Before Crisis)--
          S.T.Liabilities Rate
          (After Crisis)

Pair 8    S.T.Liabilities Ratio 2    -.06213     .12939
          (Before Crisis)--
          S.T.Liabilities Ratio 2
          (After Crisis)

Pair 9    S.T.Liabilities Ratio 3    -.14420     -.03153
          (Before Crisis)--
          S.T.Liabilities Ratio 3
          (After Crisis)

Pair 10   Inventory Turnover Ratio   -9.47777    3.40882
          (Before Crisis)--
          Inventory Turnover Ratio
          (After Crisis)

Pair 11   Receivables Turn. Ratio    -37.1432   149.26112
          (Before Crisis)--
          Receivables Turn. Ratio
          (After Crisis)

Pair12    Work. Cap. Turn. Ratio      .03774     .72291
          (Before Crisis)--Work.
          Cap. Turn. Ratio (After
          Crisis)

Pair 13   Net Work. Cap. Turn.       -2.32709   18.52228
          Ratio (Before Crisis)--
          Net Work. Cap. Tur Ratio
          (After Crisis)

                                       t      df   Sig. (2-
                                                   tailed)

Paired Samples Test Results (I.Period--II.Period)

Pair 1    Current Ratio (Before      -.109    44     .914
          Crisis)--Current Ratio
          (After Crisis)

Pair 2    Liquidity Ratio (Before     .010    44     .992
          Crisis)--Liquidity Ratio
          (After Crisis)

Pair 3    Cash Ratio (Before          .912    44     .367
          Crisis)--Cash Ratio
          (After Crisis)

Pair 4    Inventory Ratio (Before    1.915    44     .062
          Crisis)--Inventory Ratio
          (After Crisis)

Pair 5    S.T. Receivables Ratio     -.165    44     .870
          (Before Crisis)--S.T.
          Receivables Ratio (After
          Crisis)

Pair 6    Current Assets Ratio       -1.215   44     .231
          (Before Crisis)--Current
          Assets Ratio (After
          Crisis)

Pair 7    S.T.Liabilities Ratio 1    -1.583   44     .121
          (Before Crisis)--
          S.T.Liabilities Rate
          (After Crisis)

Pair 8    S.T.Liabilities Ratio 2    -.267    44     .791
          (Before Crisis)--
          S.T.Liabilities Ratio 2
          (After Crisis)

Pair 9    S.T.Liabilities Ratio 3    -4.681   44     .000
          (Before Crisis)--
          S.T.Liabilities Ratio 3
          (After Crisis)

Pair 10   Inventory Turnover Ratio   -.914    44     .366
          (Before Crisis)--
          Inventory Turnover Ratio
          (After Crisis)

Pair 11   Receivables Turn. Ratio    1.387    44     .172
          (Before Crisis)--
          Receivables Turn. Ratio
          (After Crisis)

Pair 12   Work. Cap. Turn. Ratio      .923    44     .361
          (Before Crisis)--Work.
          Cap. Turn. Ratio (After
          Crisis)

Pair 13   Net Work. Cap. Turn.        .490    44     .626
          Ratio (Before Crisis)--
          Net Work. Cap. Turn.
          Ratio (After Crisis)

Paired Samples Results (III.Period--IV.Period)

Pair 1    Current Ratio (Before      -.509    44     .614
          Crisis)--Current Ratio
          (After Crisis)

Pair 2    Liquidity Ratio (Before    -.206    44     .838
          Crisis)--Liquidity Ratio
          (After Crisis)

Pair 3    Cash Ratio (Before         1.023    44     .312
          Crisis)--Cash Ratio
          (After Crisis)

Pair 4    Inventory Ratio (Before    1.450    44     .154
          Crisis)--Inventory Ratio
          (After Crisis)

Pair 5    S.T. Receivables Ratio     -.342    44     .734
          (Before Crisis)--S.T.
          Receivables Ratio (After
          Crisis)

Pair 6    Current Assets Ratio       -1.602   44     .116
          (Before Crisis)--Current
          Assets Ratio (After
          Crisis)

Pair 7    S.T.Liabilities Ratio 1    -1.020   44     .313
          (Before Crisis)--
          S.T.Liabilities Rate
          (After Crisis)

Pair 8    S.T.Liabilities Ratio 2    -.219    44     .828
          (Before Crisis)--
          S.T.Liabilities Ratio 2
          (After Crisis)

Pair 9    S.T.Liabilities Ratio 3    -4.047   44     .000
          (Before Crisis)--
          S.T.Liabilities Ratio 3
          (After Crisis)

Pair 10   Inventory Turnover Ratio   -1.460   44     .151
          (Before Crisis)--
          Inventory Turnover Ratio
          (After Crisis)

Pair 11   Receivables Turn. Ratio    -.965    44     .340
          (Before Crisis)--
          Receivables Turn. Ratio
          (After Crisis)

Pair 12   Work. Cap. Turn. Ratio     -1.010   44     .318
          (Before Crisis)--Work.
          Cap. Turn. Ratio (After
          Crisis)

Pair 13   Net Work. Cap. Turn.       -.068    44     .946
          Ratio (Before Crisis)--
          Net Work. Cap. Turn.
          Ratio (After Crisis)

Paired Samples Results (2007 4. Quarter--2008 4. Quarter)

Pair 1    Current Ratio (Before       .174    44     .863
          Crisis)--Current Ratio
          (After Crisis)

Pair 2    Liquidity Ratio (Before    -.167    44     .868
          Crisis)--Liquidity Ratio
          (After Crisis)

Pair 3    Cash Ratio (Before         -1.631   44     .110
          Crisis)--Cash Ratio
          (After Crisis)

Pair 4    Inventory Ratio (Before    2.299    44     .026
          Crisis)--Inventory Ratio
          (After Crisis)

Pair 5    S.T. Receivables Ratio     1.269    44     .211
          (Before Crisis)--S.T.
          Receivables Ratio (After
          Crisis)

Pair 6    Current Assets Ratio        .375    44     .709
          (Before Crisis)--Current
          Assets Ratio (After
          Crisis)

Pair 7    S.T.Liabilities Ratio 1    -2.676   44     .010
          (Before Crisis)--
          S.T.Liabilities Rate
          (After Crisis)

Pair 8    S.T.Liabilities Ratio 2     .708    44     .483
          (Before Crisis)--
          S.T.Liabilities Ratio 2
          (After Crisis)

Pair 9    S.T.Liabilities Ratio 3    -3.143   44     .003
          (Before Crisis)--
          S.T.Liabilities Ratio 3
          (After Crisis)

Pair 10   Inventory Turnover Ratio   -.949    44     .348
          (Before Crisis)--
          Inventory Turnover Ratio
          (After Crisis)

Pair 11   Receivables Turn. Ratio    1.212    44     .232
          (Before Crisis)--
          Receivables Turn. Ratio
          (After Crisis)

Pair12    Work. Cap. Turn. Ratio     2.237    44     .030
          (Before Crisis)--Work.
          Cap. Turn. Ratio (After
          Crisis)

Pair 13   Net Work. Cap. Turn.       1.565    44     .125
          Ratio (Before Crisis)--
          Net Work. Cap. Tur Ratio
          (After Crisis)

TABLE 7. MANN--WHITNEY U-TEST RESULTS

                                        Test Statistics

(I.Period--II.Period)        Mann-     Wilcoxon     Z      Significance
                           Whitney U      W                 (2-tailed)

Current Ratio               883.000    1918.000   -1.045      0.296
Liquidity Ratio             910.000    1945.000   -0.827      0.408
Cash Ratio                  952.000    1987.000   -0.488      0.625
Inventory Ratio             874.000    1909.000   -1.118      0.264
S.T. Receivables Ratio     1011.000    2046.000   -0.012      0.990
Current Assets Ratio        963.000    1998.000   -0.399      0.690
S.T.Liabilities Ratio 1     890.000    1925.000   -0.989      0.323
S.T.Liabilities Ratio 2     973.000    2008.000   -0.319      0.750
S.T.Liabilities Ratio 3     715.000    1750.000   -2.401      0.016
Inventory Turnover Ratio    897.000    1932.000   -0.932      0.351
Receivables Turn. Ratio     656.000    1691.000   -2.877      0.004
Work. Cap. Turn Ratio       699.000    1734.000   -2.530      0.011
Net Work. Cap. Tur Ratio    865.000    1900.000   -1.190      0.234

(III.Period--IV.Period)
Current Ratio               917.000    1952.000   -0.771      0.441
Liquidity Ratio             944.000    1979.000   -0.553      0.580
Cash Ratio                  982.000    2017.000   -0.246      0.806
Inventory Ratio             928.000    1963.000   -0.682      0.495
S.T. Receivables Ratio      985.000    2020.000   -0.222      0.824
Current Assets Ratio        953.000    1988.000   -0.480      0.631
S.T.Liabilities Ratio 1     919.000    1954.000   -0.755      0.451
S.T.Liabilities Ratio 2     974.000    2009.000   -0.311      0.756
S.T.Liabilities Ratio 3     750.000    1785.000   -2.118      0.034
Inventory Turnover Ratio    973.000    2008.000   -0.319      0.750
Receivables Turn. Ratio     946.000    1981.000   -0.537      0.592
Work. Cap. Turn Ratio       977.000    2012.000   -0.286      0.775
Net Work. Cap. Tur Ratio    981.000    2016.000   -0.254      0.799

2007 Q4--2008 Q4
Current Ratio               893.000    1928.000   -0.964      0.335
Liquidity Ratio             928.000    1963.000   -0.682      0.495
Cash Ratio                  948.000    1983.000   -0.520      0.603
Inventory Ratio             822.000    1857.000   -1.537      0.124
S.T. Receivables Ratio      897.000    1932.000   -0.932      0.351
Current Assets Ratio       1005.000    2040.000   -0.061      0.952
S.T.Liabilities Ratio 1     898.000    1933.000   -0.924      0.355
S.T.Liabilities Ratio 2    1012.000    2047.000   -0.004      0.997
S.T.Liabilities Ratio 3     804.000    1839.000   -1.683      0.092
Inventory Turnover Ratio   1006.000    2041.000   -0.052      0.958
Receivables Turn. Ratio     844.000    1879.000   -1.360      0.174
Work. Cap. Turn Ratio       877.000    1912.000   -1.093      0.274
Net Work. Cap. Tur Ratio    803.000    1838.000   -1.691      0.091


References

Cali, M., Massa, I., and Te Velde, D., 2008. "The global financial crisis: Financial flows to developing countries set to fall by one quarter," ODI Report. London: Overseas Development Institute, available at www.odi.org.uk/resources/detailsasp?id=2523&title=global-financial-crisis- financial-flows-developing-countries-setfall-byone-quarter.

Calvo, G., Isquierdo, A., Mejia, L., 2008. "Systemic sudden stops: The relevance of balance sheet effects and financial integration," Inter-American Development Bank, Working Paper No637, available at http://www.iadb.org/lacdebtgroup/ docs/izquierdo_systemic_sudden_stops.pdf.

Chiou, Jeng-Ren, Li Cheng and Han-Wen Wu, 2006. "The determinants of working capital management," Journal of American Academy of Business, Cambridge. Vol.10, Iss.1, Hollywood. pp.149-55.

Dogan, D., 2005. "Turkey's 2001 Financial crisis and it's effect on firms: An application taken place in SEC," (Unpublished Master Thesis, Suleyman Demirel University, The Institute for Graduate Studies in Social Sciences), Isparta, Turkey.

Filbeck, G. and Krueger, T., 2005. "An analysis of working capital management results across industries," Mid--merican Journal of Business, Vol.20, Iss.2, Muncie, pp.11-18.

Forsthe, M., 2010. "China says Fed easing may flood world with hot money," available at http://www.bloomberg.com/news/2010-11-08/fed-easing-may-flood-world- economy-with-hot-money-chinese-official says.html.

Gunay, S., 2002. "The impact of recent economic crisis on the capital structure of Turkish corporations and the test of static trade-off theory: Implications for corporate governance system," VI International Conference in Economics, Economic Research Center/METU, Ankara, Turkey.

Jacob, J., Chander, P., 2009. "Economic slowdown and Indian firms: An Overview," The Journal for Decision Makers, 34 (3). pp.59-66.

Ozatay, F., 2009. Financial crises and Turkey, 1st Addition, Istanbul, Dogan Kitap.

Strischek, D., 2001. "A banker's perspective on working capital and cash flow management," Strategic Finance, Vol.83, Iss.4, Montvale. pp.38-45.

Te Velde, D., 2008. The global financial crisis and the developing countries. ODI Background Note. London: Overseas Development Institute, available at http://www.odi.org.uk/resources/download/2462.pdf.

Yang, W., ve Young, K., 2009. "Impacts of the U.S. financial crisis on the Korean economy," Harvard Asia Quarterly, 12(1), Cambridge, MA. pp.35-45.

(1) NLB = Net Liquid Balance. [(cash and the like + short term investments) - (short term liabilities + commercial notes payables + long term investments' payments due in a year)].

(2) WCR = Working Capital Requirements. [(receivables + inventory) - (liabilities + incurred expenditures + other liabilities)].

Iffet Gorkey Kesimli [1], Suleyman Gokhan Gunay [2]

[1] Luleburgaz Vocational School, Kirklareli University, Turkey

[2] Faculty of Economics and Administrative Sciences, Trakya University, Turkey

e-mails: ifkesimli@gmail.com; suleymangokhan@gmail.com
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Publication:Business and Economic Horizons
Date:Jan 1, 2011
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