Application of Fuzzy Clustering Method in Classifying Steel Companies

In modern society, steel companies have played great role in economic construction. This paper makes use of fuzzy clustering approach as an important mathematic tool to classify steel companies according to some general financial indexes, such as ratio of operating income, ratio of stockholder´s equity and current ratio. By constructing and normalizing initial partition matrix, getting fuzzy similar matrix with Minkowski metric and gaining the transitive closure, the dynamic fuzzy clustering analysis for steel companies is shown clearly that different clustered result change gradually with the threshold lambda reducing. It has a great value on many things, such as contrasting steel companies´ financial condition in order to grasp the chance of investment.