Abstract
Traditionally, financial ratios were used for profitability measurement. This research attempts to apply data envelopment analysis (DEA) to aggregate various financial ratios into a composite profitability index. The research sample includes 13 parks managed by 10 leading theme park operators in the UK. The result first reveals that multi-site operators are significantly more profitable than their single-site rivals. Furthermore, the consistency between DEA and ratio analysis indicates that DEA can be used as a good proxy of ratio analysis. It is hoped that this approach can provide new insights about financial measurement not available to managers through ratio analysis.
| Original language | English |
|---|---|
| Pages (from-to) | 283-288 |
| Number of pages | 6 |
| Journal | International Journal of Tourism Research |
| Volume | 10 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2008 May |
| Externally published | Yes |
Keywords
- Data envelopment analysis
- Financial ratios
- Profitability
- Theme park
- Window analysis
ASJC Scopus subject areas
- Geography, Planning and Development
- Transportation
- Tourism, Leisure and Hospitality Management
- Nature and Landscape Conservation