THE IMPACT OF NON PERFORMING LOAN, LOAN TO DEPOSIT RATIO, AND OPERATIONAL EFFICIENCY RATIO ON RETURN ON ASSET

Study on Banking Companies that are members of the Kompas100 Index in 2018-2020

Authors

  • Nurul Sitio Universitas Padjadjaran

DOI:

https://doi.org/10.30656/jm.v14i1.6633

Abstract

Banking plays an important role in managing the wheels of economic transactions in a country's society. Therefore, as a financial institution that has an intermediary function, banks must demonstrate good financial performance through their financial ratios. The purpose of this study was to determine the effect of the ratio of Non Performing Loans, Loan to Deposit Ratios, and Operational Efficiency Ratio on Return on Assets in Kompas100 indexed banking in 2018-2020. There are eight research samples that meet the criteria in the purposive sampling method with data analysis using multiple linear regression. The findings of this study are Non Performing Loans and Loan to Deposit Ratio have a positive but not significant effect on Return on Assets, while Operational Efficiency Ratio have a negative and significant effect on Return on Assets. Simultaneously, NonPerforming Loans, Loan to Deposit Ratios, and Operational Efficiency Ratio have a significant effect on Return on Assets.

Downloads

Published

2024-06-27

Issue

Vol. 14 No. 1 (2024): Jurnal Manajemen

Section

Articles

License

Creative Commons Attribution ShareAlike license icon
 
Please find the right and licenses in Jurnal Manajemen (JM). By submitting the article/manuscript of the article, the author(s) agree with this policy. No specific document sign-off is required.
 
1. License
 
The non-commercial use of the article will be governed by the Creative Commons Attribution-ShareAlike 4.0 International display on https://creativecommons.org/licenses/by-sa/4.0/
 
2. Author(s)' Warranties
 
The author warrants that the article is original, written by stated author (s), has not been published before, contains no unlowful statements, does not infringe the rights of others, is subject to copyrigt that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s)
 
3. User/Public Rights
 
JM's spirit is to disseminate articles published are as free as possible. Under the Creative Commons License, JM permits users to copy, distribute, display, and perform the work for non-commercial purposes only. Users will also need to atribute authors and JM on distributing works in the journal and other media of publications. Unless otherwise stated, the authors are public entities as soon as their articles got published.
Â