Quantitative evaluation of the companies financial performance

Abstract

The financial performance of the company can be described by current ratio, the quick ratio, debt to equity ratio, total debt ratio and the ratio of current assets to equity. The criteria characterizing the financial performance of the company from various perspectives may change in different directions. Moreover, these criteria are multidimensional. Therefore, a problem of finding a unified approach to describe this conflicting situation arises. To obtain an integrated estimate of a considered object, multicriteria evaluation methods are applied. The calculations made yielded actually the same results, except those obtained by two methods - the sum of ranks and COPRAS. However, the deviation of the data obtained by using these methods from the average value was small. The priority order of companies is finally determined integrating the results obtained by all methods used in the present analysis.