Evaluation of Cash Utilization Efficiency of Listed Companies in Biomedical Industry Based on DEA Model

As the most liquid asset, cash plays an important role in the production, operation, investment and profit of enterprises. Most of the existing studies focus on the reasonable holding level of cash, the factors affecting cash flow and the enterprise value evaluation based on cash flow, while few studies directly consider the efficiency of cash use. Based on the related theory of cash utilization efficiency at domestic and abroad, this paper takes 24 listed companies in biomedical industry in Shanghai and Shenzhen Stock Exchanges from 2015 to 2017 as the research object, and carries out data envelopment analysis (DEA). Through the analysis of input data and output data, the comprehensive efficiency, pure technical efficiency and scale efficiency of sample companies are calculated, and the cash utilization efficiency of sample companies is quantitatively evaluated. The results show that DEA model can well evaluate the cash use efficiency of enterprises, thus how to improve the cash utilization efficiency is particularly important for listed companies in the biomedical industry.