Borsa İstanbul companies face rising cash conversion cycles

Turkish companies listed on Borsa İstanbul are facing shifting financial dynamics, characterized by an increasing cash conversion cycle and declining liquidity. According to the Central Bank of the Republic of Türkiye’s May 2026 Financial Stability Report, the cash conversion cycle for BIST-listed firms rose to 105 days in the first quarter of 2026, while the liquid asset ratio fell to 18.7 percent.

Key drivers for these trends include rising financing costs since 2022, changes in demand composition, and extended commercial maturity periods. Consequently, companies are prioritizing working capital management and turning toward internal resources rather than external financing to maintain operations.

Fırat Uysal, Chief Revenue Officer at Octet Türkiye, noted that managing collection and payment cycles has become a critical competitive advantage. He emphasized that in an environment of high financing costs and extended maturities, companies must seek centralized systems to monitor financial flows in real-time to ensure operational sustainability.

In related market activity, 18 companies are scheduled to distribute dividends throughout September, with Türk Tuborg expected to provide the highest net dividend per share. Additionally, the corporate tax season highlights significant contributions from the banking sector, with VakıfBank, Garanti BBVA, and QNB Bank leading in tax accruals.