Transactions on Data Analysis in Social Science

Transactions on Data Analysis in Social Science

Ranking the Financial Performance of Rubber and Plastic Companies Listed on the Tehran Stock Exchange: An Integrated Fuzzy AHP–TOPSIS Approach

Document Type : Original Article

Authors
H. Yousif Kareem 1
M. R. Fathi 2
1 PhD Candidate of Business Management, College of Farabi, University of Tehran, Qom, Iran
2 Associate Professor, College of Farabi, University of Tehran, Qom, Iran
10.22034/tdas.2025.245583
Abstract
Evaluating the financial performance of listed companies is essential for informed investment decisions, yet a single financial indicator rarely provides a complete picture. This study develops an integrated fuzzy multi-criteria decision-making (MCDM) framework to evaluate and rank the financial performance of ten rubber and plastic companies listed on the Tehran Stock Exchange (TSE). Four groups of financial criteria identified from the literature (liquidity, leverage, activity and profitability ratios) were weighted using Chang's extent analysis method of the fuzzy analytic hierarchy process (FAHP), based on pairwise comparisons by a panel of experts in finance and the capital market. Financial data for 2023 and 2024 were then used to construct the decision matrix, and the companies were ranked with the TOPSIS method. Liquidity ratios received the highest weight (0.389), followed by profitability (0.249), leverage (0.219) and activity ratios (0.143). Company A10 obtained the highest closeness coefficient (CC = 0.88), followed by A4 (0.80) and A7 (0.76). The proposed framework offers investors and portfolio managers a systematic and replicable tool for comparing the financial performance of companies and supporting stock selection within an industry. Because the results depend on expert judgments and a two-year period, future studies should examine the robustness of the rankings through sensitivity analysis and longer time horizons.
Keywords
Financial Performance Evaluation
Fuzzy AHP
TOPSIS
Multi-Criteria Decision Making
Financial Ratios
Tehran Stock Exchange
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Transactions on Data Analysis in Social Science
Volume 7, Issue 2
Spring 2025
Pages 87-96

  • Receive Date 03 January 2025
  • Revise Date 14 March 2025
  • Accept Date 03 April 2025