PENGARUH LIKUIDITAS, RISIKO KREDIT DAN CAPITAL ADEQUACY RATIO TERHADAP PROFITABILITAS

Abstract

This research aimed to examine and analyze the effect of liquidity on profitability, credit risk on profitability, Capital Adequacy Ratio on profitability and liquidity, risk ratio, Capital Adequacy on profitability. While, every banks have to maintain its profitability since it would affect the public trust, investor and for the development of its bank. The research was quantitative. Moreover, the population was 38 private banking which were listed on Indonesia Stock Exchange (IDX) 2015-2018. Furthermore, the data collection technique used purposive sampling. In line with, there were 20 companies as sample sample with 4 years observation. Therefore, the total sample was 80. Additionally, the data were secondary which in the form of documentation consist of companies’ annual report. In addition, the data analysis technique used multiple regression. The research result concluded liquidity had significan effect on profitability. On the other hand, credit risk and Capital Adequacy Ratio did not affect profitability, In brief, liquidity, credit risk, and Capital Adequacy Ratio affected simultaneously profitability.
Keywords: likuiditas, risiko kredit, capital adequacy ratio, profitabilitas