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

Deniz Altun and Gizem Varol
Additional contact information
Deniz Altun: İstanbul Gelişim University
Gizem Varol: Istanbul Gelisim University

Journal of Finance Letters (Maliye ve Finans Yazıları), 2025, vol. 40, issue 123, 112-131

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.

Keywords: TOPSIS; Stock; Portfolio Management; Financial Performance (search for similar items in EconPapers)
JEL-codes: C02 G11 L25 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://dergipark.org.tr/tr/download/article-file/4127953 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:acc:malfin:v:40:y:2025:i:123:p:112-131

DOI: 10.33203/mfy.1529424

Access Statistics for this article

Journal of Finance Letters (Maliye ve Finans Yazıları) is currently edited by Süleyman Kale

More articles in Journal of Finance Letters (Maliye ve Finans Yazıları) from Maliye ve Finans Yazıları Yayıncılık Ltd. Şti.
Bibliographic data for series maintained by Süleyman Kale ().