PENGARUH RASIO KEUANGAN TERHADAP KINERJA KEUANGAN SEKTOR PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

This research aimed to analyze and examine the effect of financial ratios, namely Capital Adequacy Ratio (CAR), Non-Performance Loan (NPL), Loan-toDeposit Ratio (LDR), Operational Cost and Operational income, and Net Interest Margin (NIM) on financial performance which used profitability ratio with a proxy of Return On Assets (ROA). Moreover, the population was 21 banking companies listed on the Indonesia Stock Exchange (IDX) during 2017-2021. The research was quantitative. Furthermore, the data collection technique used purposive sampling. In line with that, there were 98 banking companies as the sample. Additionally, the data analysis technique used multiple regression, classical assumption test, coefficient (R2), F-test, and t-test with SPSS. The result concluded that Capital Adequacy Ratio (CAR) had a positive and significant effect on financial performance. However, Non-Performance Loan (NPL) had an insignificant effect on financial performance. Likewise, the Loan-toDeposit Ratio (LDR) had an insignificant effect on financial performance. In contrast, Operational Cost and Operational Income had a negative and significant effect on financial performance. On the other hand, Net Interest Margin (NIM) had a positive and significant effect on financial performance.