THE USE OF MULTI-CRITERIA BENCHMARK METHOD IN A GLOBALIZED FINANCIAL ENVIRONMENT

Models of financial forecasting are currently being explored more and more. This paper discusses the application of the internationally used TOPSIS method to provide a comprehensive picture of the suitability of using this method in the multi-criteria benchmarking process. The application of the TOPSIS method at present achieves wide-area use across the globe and, thanks to the impact of globalization, this method also belongs in the conditions of the Slovak Republic among the most frequently used methods. In this article, we prove that by applying mathematical and statistical strategies in decision-making, we can increase the probability of choosing the right decision, unlike a decision based solely on intuition. For models of multi-criteria decision-making, it is necessary to determine suitable parameters that influence the choice of the most appropriate method. The chosen method of multi-criteria decision-making is applied in the inter-company benchmark process, while using the financial analysis indicators as performance criteria. Benchmarking is part of analytical-synthetic quality management methods that provides a continuous analysis of the company position in domestic or global competitive environment. The benchmark process is applied to ten real medium-sized businesses with a staff of 100 to 200. The model is influenced by selected thirteen financial analysis indicators that tend to evaluate all components of the financial equilibrium. Using this method, we determine the resulting order of companies by eliminating the degree of subjectivity in this decision-making process, and by that, we review the reality better and more authentic.