A multicriteria credit scoring model for SMEs using hybrid BWM and TOPSIS

Financial Innovation

Table 5 Final weights of criteria and sub-criteria using BWM

Main criteria	Local weight in %	Sub criteria under financial	Local weight in%	Global weight of financial criteria	Sub-criteria	Local weight in %	Global weight in %
Financial	41.67	Liquidity	38.79	16.16	Current ratio	16.67	2.69
					Quick ratio	29.17	4.71
					Cash ratio	54.17	8.75
		Leverage	6.06	2.53	Debt equity ratio	22.86	0.58
					Outside liabilities/Net worth	62.86	1.59
					Proprietary ratio	14.29	0.36
		Coverage	15.76	6.57	Debt service coverage	53.85	3.54
					Interest coverage	30.77	2.02
					Fixed assets coverage	15.38	1.01
		Efficiency	15.76	6.57	Stock turn over	24.44	1.60
					Debtors turnover	64.44	4.23
					Creditor turnover	11.11	0.73
		Profitability	23.64	9.85	Return on capital	64.44	6.35
					Operating profit ratio	24.44	2.41
					Net profit ratio	11.11	1.09
Industry/business	8.33				Outlook of industry	7.69	0.64
					Demand–supply gap	15.38	1.28
					Production strength	15.38	1.28
					Marketing strength	23.08	1.92
					Sales growth	38.46	3.21
Managerial	16.67				Type of firm	5.45	0.91
					Education and experience	14.17	2.36
					Integrity and commitment	34.88	5.81
					Succession planning	10.63	1.77
					Financial flexibility and group support	34.88	5.81
Conduct of account	33.33				Credit history	38.46	12.82
					Repayment period	23.08	7.69
					Compliance	15.38	5.13
					Government approvals	15.38	5.13
					Audit of accounts	7.69	2.56