A Neutrosophic-Based Hybrid MCDM Framework Integrating OWCM and ARAS for Financial Performance Assessment and Selection under Uncertainty

Abstract

In contemporary financial decision-making, the accurate assessment of financial performance and the selection of optimal investment opportunities are pivotal for organizational success. Multi-criteria decision-making (MCDM) methods are widely used in many different fields to address selection problems when there are numerous competing criteria and multiple alternatives. This paper introduces a novel approach that integrates the neutrosophic set, the Opinion Weight Criteria Method (OWCM) and Additive Ratio Assessment (ARAS) for a comprehensive assessment of financial performance and selection processes. The OWCM framework facilitates the aggregation of subjective opinions from diverse decision makers, allowing for the incorporation of decision makers insights and preferences into the decision-making process. By assigning weights to evaluation criteria and leveraging neutrosophic techniques, OWCM accommodates the inherent uncertainties in subjective judgments, fostering consensus-driven decision-making. Complementing OWCM, ARAS extends traditional ratio analysis methods by enabling the systematic evaluation of alternatives based on multiple criteria, enhancing the objectivity and rigor of decision-making. Through the integration of OWCM and ARAS, decision-makers gain a holistic understanding of investment opportunities, considering a wide range of qualitative and quantitative factors. Case study and comparative analysis demonstrate the practical applicability and effectiveness of the proposed approach across decision contexts. This integrated framework offers decision-makers a robust toolset for navigating complex financial landscapes and making informed investment decisions with confidence and precision.