Abstract
Construction is an industry that manages various types of construction, including building, extending, remodeling, reconstructing, and demolishing buildings.
There are two major types of construction business: One is public construction, and the other is commercial construction, totaled 391 million dollars. Due to the recession of real estate in recent five years, the demand of the private sector decreases dramatically, which leads to the chain reaction of overall sales decreasing in construction industry in Taiwan. However, the industry still has 255 billions of sales revenues generated from government projects each year as well as hundreds of billion dollars of revenues from high-speed railroad and Kaohsiung subway BOT project. As long as the gross profit reaches 500 million dollars, the profit margin will be above 10 percent.
The major source of revenues for a construction company is done through bidding. There is only one winner in the bid. Therefore, to research and evaluate relative performance of each construction company in the bid is an important task. The purpose of this thesis is to evaluation the performance of 12 public construction companies using DEA analysis. The evaluation will focus on areas of liquidity ratios, debt and asset management ratios, profitability ratios, and overall performance of efficiency.
Major conclusions from the study are as following:
1. Four financial ratios and overall performance of efficiency were derived from DEA analysis, which eliminate inconsistencies of ratio analysis to make evaluation results more relevant.
2. Among the evaluation criteria, including liquidity, debt and asset management, profitability ratios, evaluations of profitability ratios among firms has the biggest inconsistency, followed by asset management.
3. From the sensitivity analysis, we conclude that companies with stable degrees of efficiency, which means efficiency degrees with small variance, have relatively higher profitability. This indicates the management needs to enhance the overall performance in order to enjoy ample profit.
4. From the study of DEA, we find that DEA analysis pinpoint the slack of each variable to enable decision-makers to see clearly which variables (input or output) need to be increased or decreased. This helps them to plan for the companies¡¦ overall efficiency to be at peak.
DEA analysis provides decision-makers insights by relatively comparing the differentiation of statistics. This enables them to make executable strategies. Results of examples in this thesis prove efficiencies for evaluation. The convenience of ratio analysis and the complete perspective offered by DEA analysis are two best advantages of these two evaluation methods.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0705101-160051 |
| Date | 05 July 2001 |
| Creators | TSAI, JUI-SHENG |
| Contributors | Tsai, Hsien-tang, Kuo, Tsuang Y., Ruey-Dang Chang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0705101-160051 |
| Rights | restricted, Copyright information available at source archive |
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