engleski

Comparison of a Bank's Financial Ratios Using the Analytic Hierarchy Process

The purpose of this paper is to show how to use a multi-criteria decision making method called the Analytic Hierarchy Process (AHP) to compare a bank's financial ratios. Within this study, the AHP model for the comparison of a bank's financial ratios was developed and validated. The application for comparing bank's financial ratios has been developed using Microsoft Office Excel and Visual Basic programming language. It enables comparison of financial ratios of up to 15 banks, using a developed AHP model and providing objective’s (criteria and sub-criteria) relative significance and priorities of the alternatives (banks) as a result of the comparison. In the paper a developed application is used to compare 15 largest banks in Croatia according to the total value of assets as of 30thth June 2009.

bank; financial ratios; Analytic Hierarchy Process

(medunarodna recenzija, znanstveni rad)