The Use of Fuzzy Logic in the Enterprise’s Fundamental Strength Assessment
- DOI
- 10.2991/febm-18.2018.95How to use a DOI?
- Keywords
- Enterprise’s fundamental strength; Financial ratios; Fuzzy logic
- Abstract
The main aim of the paper is to present a practical application of an original enterprise’s fundamental strength assessment fuzzy model, as an alternative to dominant in the literature solutions based on taxonomic methodology. Proposed model is an attempt to combine the fuzzy methodology with financial ratios (both in static and dynamic form) and in contrast to the most popular solutions in this area, it covers wider range of enterprise’s performance dimensions, in particular financial condition, financial results, cash flows and operating efficiency, as well as development potential. Such a comprehensive approach to enterprise’s fundamental strength assessment makes it more resistant to changes of business conditions, and thus should be more objective in comparison with taxonomic models mostly based on several, often limited in terms of information, financial ratios. In addition, it should be noted, that the use of fuzzy logic allows for significant flexibility in both – the model-creating step and during its later use. As a result, the proposed solution is relatively easy to adapt to a particular specificity of enterprises and can be further modified/developed. Practical application of the model has been presented in the paper on the example of IT companies listed on the Warsaw Stock Exchange.
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Tomasz L. Nawrocki PY - 2018/12 DA - 2018/12 TI - The Use of Fuzzy Logic in the Enterprise’s Fundamental Strength Assessment BT - Proceedings of the Third International Conference on Economic and Business Management (FEBM 2018) PB - Atlantis Press SP - 415 EP - 418 SN - 2352-5428 UR - https://doi.org/10.2991/febm-18.2018.95 DO - 10.2991/febm-18.2018.95 ID - Nawrocki2018/12 ER -