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

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Elsa Thyovani
Gusganda Suria Manda

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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How to Cite
Thyovani, E., & Manda, G. S. (2022). The Influence of Capital Adquacy Ratio and Non Performing Loan on Return On Asset. Primanomics : Jurnal Ekonomi & Bisnis, 20(2), 101–112. https://doi.org/10.31253/pe.v20i2.1177
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