Financial Diagnosis System (FDS) for Food Industry Listed in the Taiwan Stock Exchange (TWSE)

Abstract

This paper uses empirical financial data, which were announced on the website between 2007 and 2014, of food industry companies listed in the Taiwan Stock Exchange (TWSE) to verify the Financial Diagnosis System (FDS). The FDS sets up criteria by ranking the food industry companies’ financial indicators and grouping each indicator into five classes from the best to the worst. A company, for those listed as well as unlisted in the stock exchange, will be evaluated its performance of the certain financial indicator by ranking it into one of the five classes as the best, the better, the average, the worse, the worst. The FDS also sets up five forces, which is stability, profitability, activity, Growth Potential, productivity, financial analysis criteria by classifying financial indicators into five forces, ranking each force into five classes from the best to the worst.