THE EFFECT OF CAPITAL ADEQUACY RATIO (CAR), LOAN TO DEPOSIT RATIO (LDR), AND NON-PERFORMING LOAN (NPL) ON RETURN ON ASSETS (ROA) OF BANKING SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE IN 2021-2025
Keywords:
Return On Assets, Capital Adequacy Ratio, Loan to Deposit Ratio, Non Performing LoanAbstract
This study aims to determine and analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Non-Performing Loan (NPL) on Return On Assets (ROA) in banking sector companies listed on the Indonesia Stock Exchange in 2021–2025. This study uses a quantitative descriptive method with multiple linear regression analysis techniques. The research population is financial sector companies listed on the Indonesia Stock Exchange, with samples determined using the purposive sampling method so that 28 banking companies were obtained during the five-year observation period, or 140 observation data. The data used is secondary data in the form of annual financial statements. The results showed: (1) CAR had a positive but insignificant effect on ROA with a significance value of 0.821; (2) LDR has a positive and significant effect on ROA with a significance value of 0.018; (3) NPLs have a negative and significant effect on ROA with a significance value of 0.000; and (4) CAR, LDR, and NPL simultaneously had a significant effect on ROA with a significance value of 0.000 and the ability to explain the variation in ROA (adjusted R square) of 15.8%
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