Evaluation of financial condition of enterprises using fuzzy logic

Authors: 

Klymchuk I.M.

The importance of financial analysis of enterprises in the modern market economy is considered in this article. As a result of this process we receive an important piece of information for decision making by enterprise managers. Almost all subjects of market relations: owners, shareholders, banks and other lenders, investors, auditors, suppliers and buyers, insurance companies and others are interested in this information. One of the current and future directions of research in analysis, forecasting and modelling of economic phenomena and processes is fuzzy logic. Fuzzy multiple-models enable managers at various levels and business owners make economically sound decisions.
On the basis of the financial statements, such as balance sheet and income statement indicators which characterize the financial condition were formed, namely, the rate of "financial independence", "quick ratio", "gross profit margin" and "return on assets" (ROA). Term-sets and membership functions were constructed for each variable to obtain fuzzy values necessary for further analysis of the financial condition of the company, the set of rules of enterprise analysis were defined.
The current financial condition of the enterprise was estimated using the constructed fuzzy model that implements Mamdani’s fuzzy inference method. With the selected parameters and set of rules the logical conclusion was formed, which is the value of the output variable that characterizes the current financial condition of the enterprise.