Primanomics : Jurnal Ekonomi & Bisnis
Vol 20 No 2 (2022): Jurnal Primanomics : Jurnal Ekonomi dan Bisnis

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

Elsa Thyovani (Universitas Singaperbangsa Karawang)
Gusganda Suria Manda (Universitas Singaperbangsa Karawang)



Article Info

Publish Date
09 May 2022

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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