Appraisal of Uncertainty-Driven Financial Performance: Bringing Multi-Criteria Decision Making Techniques with Neutrosophic Theory

Mona Mohamed, Higher Technological Institute, 10th of Ramadan City 44629, EgyptFollow
Nurhan Alaa, Department of Computer Science, Faculty of Computers and Informatics, Zagazig University, Zagazig 44519, EgyptFollow
Eman Sayed, Department of Decision Support, Faculty of Computers and Informatics, Zagazig University, Zagazig 44519, EgyptFollow

ORCID

Mona Mohamed: https://orcid.org/0000-0002-8212-1572

Nurhan Alaa: https://orcid.org/0009-0008-7281-4210

Eman Sayed: https://orcid.org/0000-0001-6121-8458

Article Type

Research Article

Abstract

Evaluating financial performance is essential yet challenging due to various factors, including ambiguity, insufficient information, and conflicting evaluation criteria. Conventional Multi-Criteria Decision-Making (MCDM) techniques often struggle to manage these complexities effectively. To address these limitations and enhance financial performance assessments, this research proposes an innovative approach integrating Single-Valued Neutrosophic Sets (SVNS) with established MCDM methodologies. SVNS uniquely manages uncertainty by concurrently quantifying degrees of truth, indeterminacy, and falsity within financial data. This research specifically employs entropy-based weighting methods integrated with Additive Ratio Assessment (ARAS) and Multi-Objective Optimization by Ratio Analysis (MOORA) methodologies in the SVNS environment to systematically rank enterprises based on financial performance under uncertainty. By constructing a systematic and flexible model, this research significantly advances decision-making practices in financial management. The findings highlight substantial improvements in accuracy and reliability, providing decision-makers with a robust and reliable tool for informed financial evaluations.

Keywords

Financial performance, Multi-criteria decision-making (MCDM), ARAS, MOORA, Entropy method, Single-valued neutrosophic sets (SVNS)

How to Cite

Mohamed, Mona; Alaa, Nurhan; and Sayed, Eman (2025) "Appraisal of Uncertainty-Driven Financial Performance: Bringing Multi-Criteria Decision Making Techniques with Neutrosophic Theory," Neutrosophic Systems with Applications: Vol. 25: Iss. 3, Article 5.