An empirical evaluation on the performance of food service industry in Malaysia with TOPSIS model

Abstract

The food service industry makes impacts on society and plays a key role in expanding economic and business opportunity. Besides that, the economic sector is also contributed by the food and beverage industry. Therefore, performance evaluation is vital for the food service industry in a highly competitive environment in order to improve the decision-making process in an organization. The objective of this study is to propose a conceptual framework in evaluating and ranking the financial performance of the food companies from the consumer products sector in Malaysia with Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) model. Current ratio, return on equity, profit margin, debt to equity ratio, earnings per share, dividend yield and price earnings ratio are the financial ratios employed in this study. The results of this study show that HEXZA gives the highest performance, followed by TGUAN, 3A and finally CANONE. This study is significant as it helps to evaluate the financial performance of food service industry in Malaysia with the proposed conceptual framework using TOPSIS model.