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TOPSIS Approach in the Financial Performance Evaluation of Selected Firms From the NASDAQ Stock Exchange

Author

Listed:
  • Deniz Altun

    (İstanbul Gelişim University)

  • Gizem Varol

    (Istanbul Gelisim University)

Abstract

This study evaluates the financial performance of companies listed on the NASDAQ stock exchange, including Microsoft (MSFT), Tesla (TSLA), Amazon (AMZN), Netflix (NFLX), Marriott (MAR), DexCom (DXCM), American Electric Power (AEP), Vertex Pharmaceuticals (VRTX), Monster Beverage (MNST), and Nasdaq Inc. (NDAQ), for the years 2020-2023 using the TOPSIS method. TOPSIS is a multi-criteria decision analysis technique that ranks alternatives based on their proximity to the ideal solution. In this study, financial indicators such as the current ratio, cash ratio, asset turnover, accounts receivable turnover, P/E ratio, gross profit margin, return on assets, return on equity, return on capital, and EBITDA were used to compare the annual performance of companies. According to the findings, Microsoft exhibited the highest performance, while Vertex Pharmaceuticals demonstrated a strong and stable financial structure. Monster Beverage and Marriott International showed fluctuating performance, whereas Tesla, despite improving in recent years, had a relatively lower overall performance. Nasdaq Inc. and American Electric Power experienced annual fluctuations and generally exhibited lower performance.

Suggested Citation

  • Deniz Altun & Gizem Varol, 2025. "TOPSIS Approach in the Financial Performance Evaluation of Selected Firms From the NASDAQ Stock Exchange," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 40(123), pages 112-131, April.
    • Handle: RePEc:acc:malfin:v:40:y:2025:i:123:p:112-131
    DOI: https://doi.org/10.33203/mfy.1529424
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    More about this item

    Keywords

    TOPSIS; Stock; Portfolio Management; Financial Performance;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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