Analysis of the Effect of Financial Ratios on Banking Profit Levels of State Owned Enterprises

Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 04

Abstract

This study was conducted to determine how much influence financial ratios consisting of: Non-Performing Loans, Capital Adequacy Ratio, and Operating Expenses on Operating Income on profitability. In this study the method used is quantitative method. The population is a group of Bank Band Usaha Milik Negara listed on the Indonesia Stock Exchange for the period 2017 – 2021. The sample in this study was 4 (four) Bank Band Usaha Milik Negara selected using the purposive sampling method. The type of data used in this study is secondary data. The data collection method used is the documentation method. The model used is in the form of multiple linear regression processed with eViews 10 software. Based on the results of the analysis conducted, it was obtained that: Non-Performing Loans do not negatively affect the level of profit. Capital Adequacy Ratio has a significant positive effect on the level of profit, while Operating Expenses on Operating Income has a significant negative effect on the company's profit level.

Authors and Affiliations

Hedwigis Esti Riwayati,Samuel Johanes,Nyi Mas Rizki Noviyah

Keywords

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  • EP ID EP726980
  • DOI 10.47191/jefms/v6-i4-08
  • Views 35
  • Downloads 0

How To Cite

Hedwigis Esti Riwayati, Samuel Johanes, Nyi Mas Rizki Noviyah (2023). Analysis of the Effect of Financial Ratios on Banking Profit Levels of State Owned Enterprises. Journal of Economics, Finance and Management Studies, 6(04), -. https://europub.co.uk/articles/-A-726980