Research On The Financial Performance Evaluation Based On DEA

The reform of company system, the financial performance evaluation is veryimportant for the listed companies, the enterprise investors, managers andgovernment departments. Due to the limitation of the traditional performanceevaluation system in pharmaceutical industry research value, this paper introducesthe investment oriented DEA model, according to the2010data, China’s34listedon the Shanghai Stock Exchange listed pharmaceutical companies financialperformance evaluation. The DEA model is one of the multiple input and multipleoutput evaluation model, evaluation results show the relative performance ofenterprises within the industry. This paper uses the financial ratio index asevaluation index which input indicators include the current ratio, quick ratio, theratio of liabilities to assets, accounts receivable turnover, inventory turnover rate,the rate of turnover of current assets, fixed assets turnover ratio and total assetsturnover rate, output indicator for income cost ratio and income expense ratio. Afterthe results show that34sample pharmaceutical company is home to19of thefinancial performance of a value of1and above, the remaining below1; causing thefinancial performance of DEA invalid main reason is either invalid or void puretechnology scale, sometimes the two common causes; in the projection of sampleenterprises in most of the enterprises investment and output indicators exist in thespace.