"EFFICIENCY ANALYSIS USING DATA ENVELOPMENT ANALYSIS (DEA): A CASE STUDY OF INDIAN OIL AND GAS SECTOR COMPANIES"

Abstract:

 Businesses must efficiently use their resources in the current era of fierce competition. Financial performance indicators play a significant role in determining how effective a business is. Financial ratio analysis has historically been used to gauge financial performance. When a business must take into account several inputs and outputs at once, it faltered. This flaw led the Data Envelopment Analysis to suggest a different strategy to deal with multiple inputs and outputs. It is a mathematical method based on linear programming that uses the benchmarking concept to reveal the companies with the highest levels of efficiency. Data Envelopment Analysis is used in this study to evaluate the financial efficiency of selected oil and gas companies in India. The financial statements of 10 oil and gas companies from 2017-18 to 2021-22 are used for this purpose. Then, scale efficiencies are also determined and calculated, along with CCR and BCC Efficiency scores.