FINANCIAL PERFORMANCE RANKING OF TRANSPORTATION COMPANIES IN MALAYSIA USING THE TOPSIS METHOD

Abstract

This study aims to evaluate and rank the financial performance of transportation companies in Malaysia using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), a widely accepted Multi-Criteria Decision-Making (MCDM) tool. The main objective is to rank the companies based on multiple financial indicators, including profitability, liquidity, efficiency, and leverage. Financial data were collected from annual reports and analyzed using TOPSIS to determine each firm's relative closeness to the ideal financial performance. The results reveal significant variations in performance across firms, where high return on assets and minimal debt levels drive top rankings. The findings deliver practical, data-based benchmarks that aid investment decisions, policy formulation, and strategic planning in the transportation industry.