A classification method for banks' profitability using revised Thompson-Thrall profit ratios in DEA and cluster analysis with an application to South Asian banks

摘要: Many researchers in the past have addressed issue of profitability banks from different perspectives using financial ratios and decision models. Thompson et al. (1995) this by introducing linked-cone (LC) profit with assurance regions (AR) data envelopment analysis. In paper, we propose a method to revise LC–AR show contrast between Thompson–Thrall’s revised ratios. an application set South Asian banks, classify them as profit-makers, loss-makers or neither. Then, analysing banks’ cluster analysis ratios, how strengthen classification.