Outline

Ingegneria Sismica

Ingegneria Sismica

Construction and Application of Comprehensive Evaluation Model of Multidimensional Financial Indicators Based on Fuzzy Mathematics

Author(s): Xiangyu Xie1
1University of Bristol Business School, University of Bristol, Bristol BS8 1TH, United Kingdom
Xie, Xiangyu. “Construction and Application of Comprehensive Evaluation Model of Multidimensional Financial Indicators Based on Fuzzy Mathematics.” Ingegneria Sismica Volume 43 Issue 2: 1-21, doi:10.65102/is2026594.

Abstract

Based on the basic principles of fuzzy mathematics, this paper details the application of fuzzy mathematical theory in financial evaluation. Organically combining the fuzzy mathematical matrix with the comprehensive financial evaluation, it synthesizes the subjective assignment method and entropy weight method to calculate the index weights, and establishes a fuzzy comprehensive evaluation model of the enterprise’s financial ability based on fuzzy mathematics. The model we put forward is utilized to carry out the empirical research on the solvency, operation ability, profit-making possibility, and growth ability of Company A. The clustering method is employed by us to carry out the evaluation on the similarity degree of the entropy weight vectors which come from experts. This appraisal is helpful for the ascertainment of the weights of experts and the aggregation of the outcomes of decision-making. The experts’ cluster decision-making shows that among the four dimensional weight coefficients, solvency>development ability>operating ability>profitability. The evaluation results show that the financial status of Company A is medium and it is necessary to control the risk of operating capacity and profitability within a reasonable range.

 

Keywords
fuzzy mathematics; financial evaluation; cluster analysis; entropy weight method; fuzzy comprehensive evaluation

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