An integrated AHP-modified VIKOR model for financial performance modeling in retail and wholesale trade companies

Abstract

Wholesale and retail sector companies improve their financial structure to be more resistant to economic fluctuations. Also, they are complying with instabilities in the economy where they could improve their activities and use their capital more efficiently to save costs and improve their profits. So, financial performance evaluation models are crucial for companies in the wholesale and retail trade sectors to improve their long-term financial performance. No model in the literature presents a flexible structure that can propose periodically monitoring financial performance in the wholesale and retail sector companies related to their financial ratios. For this purpose, we targeted to develop a new financial performance measurement model that appeals to the wholesale and retail trade sectors using AHP (Analytical Hierarchy Process) and modified VIKOR (Vise Kriterijumska Optimizacijal Kompromisno Resenje) methods are used together. AHP-modified VIKOR integrated model has a flexible structure that can give yearly or periodically monitoring advantages related to the obtained data structure. Also, we performed a comparative analysis using other multi-criteria decision-making methods, namely, the TOPSIS and MOORA methods.