Analysing Efficiency of Listed Automobile Companies in India Using DEA

Authors

  • Arunava Saha, Ashit Agarwal

Abstract

In this research paper, we evaluate the relative efficiency of six National Stock Exchange (NSE) listed automobile companies. In doing so, we rely on various financial indicators like net profit and operating profit that describe the health of a company from various perspectives. The calculation of financial ratios were done using the historic data of the companies. Historic data have been sourced from the annual financial statements published by the companies. For analysing the data, Data Envelopment Analysis has been used. DEA shows several advantages and the evaluating results are more objective and systematic when compared to traditional methods. The results show that several listed corporations are operating inefficiently, which suggests that costs can be reduced significantly. So, measures for improving efficiency are also discussed.

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Published

2020-05-17

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Section

Articles