Choosing the Best Company for Investment According To the Financial Factors in the Neutrosophic Environment (Case Study: Automotive Industry)

Subject Areas : Fuzzy Optimization and Modeling Journal

Mohsen Imeni ¹ , Bardia Pouresmaeil Motlagh ² , Faezeh Pirouz ³ , Azadeh Shemshad ⁴

1 - Department of Accounting, Ayandegan Institute of Higher Education, Tonekabon, Iran.
2 - Department of Accounting, Ayandegan Institute of Higher Education, Tonekabon, Iran.
3 - Department of Accounting, Tohid Girls College, Amol, Iran.
4 - Department of Accounting and Control, Erasmus University, Rotterdam, Netherlands.

Received: 2022-10-29 Accepted : 2022-12-30 Published : 2022-12-01

Keywords: financial ratio, similarity measure, SVNS, Neutrosophic Sets,

Abstract :

The analysis of financial ratios is one of the methods of examining the state of companies, which expresses the relationships between the items in the financial statements. The study of financial ratios helps us to get a comprehensive and correct understanding of the performance and financial status of companies and to benefit from them when investing and checking the efficiency of companies. Since many current phenomena in finance and the economy are ambiguous, they are treated as if they are clear, so this article, using Neutrosophic, examines the selection of a company for investment using financial ratios in the Neutrosophic environment. Where verbal judgments (qualitatively) are used for decision-making, the proposed approach will perform better than previous approaches. To rank the options in this research, eight financial ratios widely used in investment analysis are considered indicators of the problem. Then, ranking the alternatives is done by defining the ideal option (with the best performance in all indicators) and applying the known criterion of similarity. A numerical example is operated to understand the proposed approach better, and the results are presented.