Financial Performance Evaluation of IT Industry Through DEA Window Analysis Approach

The increased number of business failures in the companies reflects the need to apply new tools to evaluate financial performance. Data Envelopment Analysis (DEA) is a powerful analytical tool that has the versatility to give a single measure of performance while simultaneously handling the multiple inputs and outputs that represent the most significant factors involved in a company’s activities.This paper aims to analyze the time series performance of NSE IT Index companies based on DEA methodology. This model is capable of accurate assessment the financial performance and setting stability index benchmarks. This benchmark enables in evaluating the performance levels being achieved in different years as compared to stability index benchmarks. We observed that most of the company’s individual year performance rank is matching with the stability index rank. We have found that some of the companies’ rankings are abnormal fluctuations, with this we try to found the reasonableness. This method potentially offers rich new insights into the performance of firms. The results of this study will provide benchmarks for auditors especially in the planning stage of the audit to find out the anomalies