Proceedings of the Third International Conference on Economic and Business Management (FEBM 2018)

The Use of Fuzzy Logic in the Enterprise’s Fundamental Strength Assessment

Authors
Tomasz L. Nawrocki
Corresponding Author
Tomasz L. Nawrocki
Available Online December 2018.
DOI
https://doi.org/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/).

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Volume Title
Proceedings of the Third International Conference on Economic and Business Management (FEBM 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
December 2018
ISBN
978-94-6252-623-5
ISSN
2352-5428
DOI
https://doi.org/10.2991/febm-18.2018.95How to use a DOI?
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  - https://doi.org/10.2991/febm-18.2018.95
ID  - Nawrocki2018/12
ER  -