Enhancing the Efficiency of the Benchmarking Learning Map Model: The Integrated Fra Perspective

Financial Ratio Analysis (FRA) has been used for the evaluation of firm’s operating performance. However, these individual performance values calculated from FRA have their own different managerial deficiencies. The original Data Envelopment Analysis (DEA) may fill this gap and may be used to calculate efficiency values. This study integrates the DEA with Slacks-Based Measure Model (SBM) to enhance the evaluation efficiency of firms’ operating performance. The analysis used financial data of 46 textile firms (that trade in the Taiwan stock market) before the 2007 financial crisis. From this total, 8 textile firms were categorized as an efficient operating group and the other 38 firms were categorized inefficient. This study employed the slackbased measure and the analysis model as a benchmark management tool to offer some improvements for the inefficient firms.