Assessing Efficiency Using Data Envelopment Analysis Method and its Relation to Financial Ratios

Financial ratios provide a view of a company's status and performance for users of financial statements. However, they have limitations and setbacks that may mislead users. In this research, their efficiency and ranking were calculated for 210 companies listed in Tehran Stock Exchange (TSE) based on negative variables by using a Slacks-Based Measure (SBM) of efficiency in Data Envelopment Analysis (DEA) model over a 12-year period. In the next step, using the variance-based Structural Equation Modeling (SEM) test, the selected 8 financial ratios were evaluated through Fuzzy Delphi Method (FDM) and Fuzzy Hierarchical Analysis (FHA). The results indicated that the quick ratio and profit margin had the highest regression coefficients. In addition to covering the limitations of financial ratios, this model can be applied as a complement to analysis of financial ratios.