Assessment and ranking of automobile manufactures listed on the Tehran Stock Exchange via utilizing ISM and BWM methods

Amjadian, Saber; Mohammadi, Ata; Parvizi, Behzad

doi:10.22075/ijnaa.2022.26816.3418

Assessment and ranking of automobile manufactures listed on the Tehran Stock Exchange via utilizing ISM and BWM methods

Document Type : Research Paper

Authors

Saber Amjadian

Ata Mohammadi

Behzad Parvizi

Accounting Group, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran

10.22075/ijnaa.2022.26816.3418

Abstract

Appraising and evaluating the financial performance of companies as well as the extent to which they achieve their specified objectives are among the important methods for identifying weaknesses, ameliorating them, as well as making financial decisions. However, specialized performance analysis requires the deployment of accurate and comprehensive performance evaluation criteria. In this study, the financial performance of car companies active on the Tehran Stock Exchange shall be reviewed and evaluated. The automotive industry is one of the oldest industries in the country's economy as well as the capital market. Due to its strategic significance as well as creating countless job opportunities and being among the ``mother industries'', despite multiple problems and obstacles, this industry has always been supported and valued by the government. This support and backing is likely to continue. It is estimated there are approx 60 companies operating in this industry. Hence, for this analysis, upon conferring with relevant experts, 50 financial ratios were utilized (49 ratios were finalized). The ratios were classified into 6 categories: conjunctive, economic, leverage, liquidity, profitability and activity. These ratios were weighted and prioritized by experts. The analysis was conducted utilizing the \textbf{\textit{ligo}} software and via the multivariate decision criteria of best/worst and the Aras technique. Ultimately, the companies were ranked. The assessment was performed on companies whose ratios were available. The findings demonstrated that the Mashhad Ring Manufacturing Company, Saipa Azin and Iran Khodro companies were ranked 1 to 3, respectively. Meanwhile, Irandor Foundry Industry Company was ranked in the last place.

Keywords

Performance appraisal

financial ratios

best worst method

Tehran Stock Exchange

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