A COMPANY PERFORMANCE MEASUREMENT BY ROIC AND DEA-AN EXAMPLE OF TAIWAN IC DESIGN HOUSE

ABSTRACT This study analyzed the factors of performance variations in Taiwan IC design house firstly, and then evaluated the performance of Taiwan IC design house by Data Envelopment Analysis (DEA) and Return on Investment Capital (ROIC) to provide suggestions to each company. Company can find its performance out via return of sales (ROS) and capital turnover to clarify which its performance effort by ROIC. DEA supports company to understand how to improve its performance. To integrate ROIC and DEA into a performance measurement procedure, and then develop a performance measurement matrix with ROIC and DEA could help company to trace its performance orbit. Finally, to provide a performance improving strategy for Taiwan IC design house.