The Influence of Capital Adquacy Ratio and Non Performing Loan on Return On Asset

Authors

  • Elsa Thyovani Universitas Singaperbangsa Karawang
  • Gusganda Suria Manda Universitas Singaperbangsa Karawang

DOI:

https://doi.org/10.31253/pe.v20i2.1177

Keywords:

Capital Adequacy Ratio, Non Performing Loan, Return On Asset

Abstract

Bank performance can be measured using Return On Assets as a measuring tool for a company in achieving profitability in the form of assets owned by the company. This study aims to determine the effect of the ratio of capital adequacy and non-performing loans on return on assets. The population of this study are several banking companies listed on the IDX in the 3 year observation period (2017-2019). This study took samples taken using purposive sampling method. Based on the results of multiple linear regression analysis which shows that the capital adequacy ratio has a positive and significant effect on asset returns, meanwhile non-performing loans have a negative and insignificant effect on asset returns.

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Published

2022-05-09