Measurement of the efficiency of manufacturing companies and data envelopment analysis traded on BIST100

Nowadays, the increasing competition environment necessitates to use the existing resources of the enterprises more effectively. In particular, it is vital for enterprises operating in the manufacturing sector to make efficiency measurements in order to compete and succeed in national and international markets. Data Envelopment Analysis (DEA) is an important efficiency measurement technique with a wide range of applications. DEA is a parameterless method based on mathematical programming to measure the relative effectiveness of decision-making units with multiple inputs and outputs. DEA provides a reference set of effective decision-making units for ineffective decision-making units and provides the necessary improvement suggestions to make them effective. In this study, the efficiency of manufacturing enterprises traded on Stock Exchange İstanbul (BIST 100) was measured by data envelopment analysis. The current ratio, asset turnover rate, receivables turnover rate, inventory turnover rate, financial leverage ratio, long-term debts / equity ratio and fixed assets / continuous capital ratio of 37 enterprises were used as input variables; net profit margin, operating profit margin, return on equity and return on assets of 37 enterprises as output variables in the study period covering 2010-2017. Total efficiency (CCR-I), technical efficiency (BCC-I) and scale efficiency values of manufacturing enterprises were calculated with input oriented models of DEA. As a result of this study, effective and ineffective enterprises were determined for each year and potential improvement rates and reference sets were determined for the ineffective enterprises to become effective. In addition, the ranking of the effective enterprises was made with the super efficiency models and the most effective enterprises were determined over the years.