The Effect of Capital Adequacy Ratio, Non-Performing Loan and Debt Equity Ratio on Financial Performance
Keywords:
capital adequacy ratio, non-performing loan, debt equity ratio, financial performanceAbstract
This study aims to determine the effect of capital adequacy ratio, non-performing loan and debt equity ratio on financial performance in banking companies listed on the Indonesia Stock Exchange (IDX) in 2020-2022. The population in this study is banking companies listed on the Indonesia Stock Exchange (IDX) in 2020-2022. This study used purposive sampling techniques. With an analysis unit of 129 financial statements with 43 banking companies. The analysis used in this study is multiple regression analysis using SPSS version 25 as a tool in calculation. Based on the results provided in this study, it shows that the capital adequacy ratio and non-performing loans have no effect on financial performance. Meanwhile, the debt equity ratio negatively affects financial performance. The predictive ability of the three variables to financial performance was 18.8% while the other 81.2% came from other variables
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