Performance Evaluation of Tehran Stock Exchange Cement Firms with Fuzzy Analytic Hierarchy Process and TOPSIS Methods

The Cement Industry is one of the key industries, which plays an essential role in the development of a country's economic infrastructure. The purpose of this study is to present a fuzzy model to evaluate the performance of Tehran Stock Exchange cement firms into account using financial ratios and taking into account the preferences of different decision makers. This study is based on FAHP and TOPSIS. FAHP method is used in determining the value of the criteria of various decision makers, and finally ranking of the firms is determined by TOPSIS method. In the present study, different financial ratios have been used for evaluation. The liquidity ratios are used to assess the ability of companies to perform short-term obligations within deadline. According to obtained results, the following companies have respectively achieved the first, second, and third ranks: Ghaen Cement Co., Dashtestan Cement Co., and Kerman Cement Co. The Leverage Ratios are used to assess the company's ability to perform short-term and long-term liabilities. According to results, Khazar Cement Co. has achieved the first rank, Mazandaran Cement Company the second rank, and Bojnourd and Dashtestan Cement Companies have been jointly ranked the third. The Activity Ratios are used to assess how to invest in assets that generate income for their company. According to the results, Gharb Cement Co. has achieved the first rank, Fars and Khuzestan Cement Co. the second rank, and Behbahan Cement Co. has been ranked the third. The profitability ratios are used to assess the company's ability to generate revenue in excess of the cost. According to the results, Ghaen Cement Co. has achieved the first rank, Dashtestan Cement Co. the second, and Behbahan Cement Co. has been ranked the third. The Growth ratios are used to assess the activities of companies in the industry. According to the results, Gharb Cement Co. has achieved the first rank, Iran Gach Cement Co. the second, and Bojnourd Cement Co. has been ranked the third. And finally using the TOPSIS approach, the companies were ranked in terms of performance. According to the results, Ghaen Cement Co. has achieved the first rank, Ilam Cement Co. the second, and Gharb Cement Co. has been ranked the third.