Determination on the Financial Performance of Construction Companies Using TOPSIS Model

Evaluation of financial performance is crucial for the construction sector since the companies from the construction field greatly contribute to the development and economy of a country. Financial performance analysis can be utilized to understand the financial status of the companies. Financial ratios are the key equations that can be utilized to sort through the numbers and get a clearer look at how well the construction business is operating. The financial performances of Malaysia's listed construction companies are assessed by using the proposed TOPSIS model. The outcomes of this research study display the top five performing companies are KERJAYA, SUNCON, AME, GAMUDA, and FAJAR. These well-performing companies are able to serve as a reference benchmark to those companies with lower financial performances for their continuous improvement. This study can show its significance in evaluating the companies' financial performance and determining the construction companies' position ranking. This study is beneficial not only to the company itself for future improvement, but also to the policy maker, stakeholder, and investor during the decision making process.