A Decision Support Model for Financial Performance Evaluation of Listed Companies in The Vietnamese Retailing Industry

Abstract

This paper aims to propose a Comprehensive Decision Support Model to evaluate retail companies’ financial performance traded on the‎Vietnam Stock Exchange Market. The financial performance has been examined in terms of the valuations ratios, profitability ratios, growth‎rates, liquidity ratios, efficiency ratios, and leverage ratios. The data of twelve companies from the first quarter to the fourth quarter of 2019 and‎the first quarter of 2020 were employed. The weights of 18 chosen financial ratios are calculated by using the Standard Deviation method (SD).‎Grey Relational Analysis technique was applied to obtain the final ranking of each company in each quarter. The results showed that leverage‎ratios have the most significant impact on the retail companies’ financial performance and gives some long-term investment recommendations‎for stakeholders and indicated that the Taseco Air Services Joint Stock Company (AST), Mobile World Investment Corporation (MWG), and‎Cam Ranh International Airport Services Joint Stock Company (CIA) are three of the top efficient companies. The three of the worst companies‎are Viglacera Corporation (VGC), Saigon General Service Corporation (SVC), and HocMon Trade Joint Stock Company (HTC). Furthermore,‎this study suggests that the GRA model could be implemented effectively to ranking companies of other industries in the future research.