The Impact of Financial Ratio Indicators on Banking Profitability in Indonesia
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Abstract
This study aims to determine the bank's performance in terms of the risk profile, income, and capital aspects of all banks in Indonesia in 2015-2019. This type of research is quantitative with the analysis technique used is the panel data regression technique to determine whether there is a significant effect of one dependent variable (dependent) and more than one independent variable (independent). The ratio is measured by credit risk (financing), liquidity risk is proxied by FDR (Financing Debt Ratio), while asset quality is stated by NPF (Non-Performing Financing), company size as measured by total assets, measured by profitability analysis ROA (Return On Assets) Meanwhile, capital is measured by CAR (Capital Adequacy Ratio), this data shows a relationship with the financial ratio indicator of bank profitability in Indonesia. . The population in this study were all banking companies listed on the Indonesia Stock Exchange for the period 2015-2019. Based on the research that has been done, it can be concluded that FDR, CAR, and NPF have a positive effect on ROA.
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