Performance evaluation of Turkish cement firms with fuzzy analytic hierarchy process and TOPSIS methods

In today's competitive environment evaluating firms' performance properly, is an important issue not only for investors and creditors but also for the firms that are in the same sector. Determining the competitiveness of the firms and evaluating the financial performance of them is also crucial for the sector's development. The aim of this study is developing a fuzzy model to evaluate the performance of the firms by using financial ratios and at the same time, taking subjective judgments of decision makers into consideration. Proposed approach is based on Fuzzy Analytic Hierarchy Process (FAHP) and TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) methods. FAHP method is used in determining the weights of the criteria by decision makers and then rankings of the firms are determined by TOPSIS method. The proposed method is used for evaluating the performance of the fifteen Turkish cement firms in the Istanbul Stock Exchange by using their financial tables. Then the rankings of the firms are determined according to their results. (C) 2007 Elsevier Ltd. All rights reserved.