Open AccessAnalysis of Efficiency and Strategy for Increasing Efficiency through the Potential Improvement of the Company Using Data Envelopment Analysis Method (A Study of Cement Companies in Indonesia)
Author(s) -
Riko Hendrawan,
Eddy Putra
Publication year - 2021
Publication title -
xi'nan jiaotong daxue xuebao
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.308
H-Index - 21
ISSN - 0258-2724
DOI - 10.35741/issn.0258-2724.56.3.17
Subject(s) - data envelopment analysis , earnings before interest, taxes, depreciation, and amortization , stock exchange , business , revenue , operations management , finance , economics , mathematics , statistics , earnings
This research analyzes the efficiency of four of thirteen cement companies in Indonesia listed on the Indonesia Stock Exchange, namely Semen Indonesia Ltd., Solusi Bangun Indonesia Ltd., Indocement Tunggal Prakarsa Ltd., and Semen Baturaja Ltd. during the 2014-2018 period. This research employs quantitative methods with comparative and descriptive approaches, where the efficiency level was analyzed using the Data Envelopment Analysis (DEA). The input variables in this research are raw material costs, labor costs, total assets, and total equity, while the output variables are revenue and EBITDA. The analysis shows that respectively the average efficiency values are as follows: Semen Indonesia Ltd. (0.92), Solusi Bangun Indonesia Ltd (0.85), Semen Baturaja Ltd (0.8), and Indocement Tunggal Prakarsa Ltd (0.74). Considering these results, the potential improvements that can be done by Semen Baturaja Ltd. and Indocement Tunggal Prakarsa Ltd. are to increase the revenue and EBITDA, minimize the raw materials, and maximize the use of assets.