Implementation of Fuzzy Tsukamoto Algorithm in Determining the Level of Financial Distress in Microfinance Institutions

Abstract

Fuzzy Tsukamoto is one method that is very flexible and tolerant of existing data. Fuzzy Tsukamoto has the advantage of being more intuitive, accepted by many, more suitable for the input received from humans rather than machines. Microfinance institutions are specialized financial institutions established to provide business development services and community empowerment, either through loans or financing in micro-scale businesses to members and the community, deposit management, and the provision of business development consulting services that are not solely for profit. The purpose of this study is to apply the fuzzy Tsukamoto method to determine the level of financial distress in microfinance institutions in the city of Medan based on the variables Liquidity Ratio, Age Firm, and Cumulative Profitability Ratio, Profitability Ratio, Financial Structure Ratio, Capital Turnover Ratio.