TOPSIS based decision making for financial performance in Malaysia renewable energy sector.

The growth of Malaysia’s renewable energy sector calls for objective methods to evaluate the financial performance of industry players. This study utilizes the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), a multi-criteria decision-making (MCDM) approach, to assess and rank 27 renewable energy companies based on 2024 financial data obtained from Datastream. These companies are evaluated using nine financial ratios as criteria to construct a financial performance index. The TOPSIS model was applied to measure each company’s relative closeness to an ideal performance benchmark. Results showed significant variation in financial performance, with top-ranking firms displaying stronger profitability and financial balance. Larger and more diversified companies generally outperformed smaller peers. The study offers a practical, replicable framework for evaluating financial efficiency in the renewable energy sector. It provides useful insights for investors, policymakers, and corporate decision-makers seeking data-driven tools for strategic planning and sustainability-oriented investment decisions.