Efficiency Analysis of Companies Operating in the Turkish Automotive Sector

The world is evolving day by day. With this change, the competition has intensified. Organizations that make the most use of their resources in a competitive environment can survive. Whether they achieve the largest output level with the inputs they use is important in terms of performance valuation. Efficiency operation of businesses in automotive industry has a great importance as well as in all sectors. In this study, the efficiency values of the automotive sector, which is one of the leading sectors of Turkish industry, were calculated and performance results were tried to be obtained. In the efficiency analysis, CCR model and Malmquist total factor productivity index were used according to data envelopment analysis which is one of the non-parametric methods. DEA is a linear programing based technique measuring the efficiency of decision units in the presence of multiple input and outputs. The Malmquist total factor efficiency index is a dynamic analysis while data enveloping analysis is a stable analysis. Malmquist is a method used to measure changes in decision-making units over time with the total factor efficiency index. Analysis was conducted using the package program DEAP 2.1. Based on 2015-2018, data from 16 enterprises were used continuously during this period. In the analysis, total assets, equity capital and employee numbers were used as input factors. And also, turnover and net profit data were used as output factors. According to the results of the analysis, there were two companies efficient in all years, but there were nine companies that are not efficient in any year. Among the automotive companies in the observation cluster, 6 companies in 2015, 4 companies in 2016, 3 companies in 2017 and in the last year 4 companies in 2018 have been efficient. As of the years, average efficiency ratings have decreased. The average efficiency rating was highest in 2015 which is the first year of analysis, while it was lowest in 2018 which is the last year of the analysis. Malmquist Total Factor Efficiency Index values compare the average index values of 16 companies in the observation cluster by year. Accordingly, there was a slight decrease in 2016, while there was an increase in 2017 compared to 2016 and in 2018 compared to 2017.