Data Envelopment Analysis Evaluation of Canadian Resource Companies

In today's competitive atmosphere, financial management is a key indicator of a corporation's efficiency. The top management wants to identify and eliminate the underlying causes of inefficiencies, thus helping their firms to gain competitive advantage, or, at least, meet the challenges from others. Consequently, productivity management has become part of their management practices. This paper presents an evaluation of profitability and operating efficiency of 63 Canadian resource companies during year 2004 using data envelopment analysis (DEA). The results show that there is potential to improve the performance for Canadian resource industry from both operating and profitability perspectives. The results also suggest that the examined companies are more profitable than operationally efficient and company size is a factor to affect the performance