Author(s)

H. M. P. Capobianco, E. Fernandes & A. M. Cister

Abstract

This paper analyses the financial efficiency of airline companies by using third party capital to their financial returns and assets turnover. A previous work has determined three financial leverage intervals, classifying companies as great, fuzzy and bad, regarding their debt condition. A determinist model (Data Envelopment Analysis) to minimize indebtedness for a given return on assets, return on equity and assets turnover was the first step to rank companies. This technique resulted in a large fuzzy financial leverage interval for many companies. The use of two different non-deterministic methodologies, which were: neural network and decision tree, helped reduced this fuzzy area, allowing enhanced classification of companies. By combining a set of techniques, this study demonstrated how to reduce the number of company observations classified in the fuzzy area by nearly

Keywords