THE The Analysis Of The Impact Of Return On Asset, Return On Equity, And Ratio Of Liquidity, On Overall Company Performance: Case Study In Banking Sector Listed Indonesia Stock Exchange

This study analyzes the impact of Return on Assets (ROA), Return on Equity (ROE), and Liquidity Ratio on the overall performance of banking companies listed on the Indonesia Stock Exchange. This study uses a quantitative approach with a correlation research design. Through purposive sampling technique, 10 companies listed on the IDX were obtained as research samples. Using multiple linear regression analysis, the results show that ROA and ROE have a significant positive effect on company performance, which emphasizes the important role of profitability in financial success. However, Liquidity Ratio does not significantly affect performance, indicating that short-term liquidity management alone is not the main determinant of banking sector performance. These findings provide valuable insights for investors, financial managers, and policy makers in formulating strategies to improve banking sector growth. Future research can explore additional financial and non-financial factors to develop a more comprehensive framework for assessing company performance.

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Publication Details

Journal
Indo-Fintech Intellectuals Journal of Economics and Business
Published
2024-12-22
DOI
https://doi.org/10.54373/ifijeb.v4i6.2761
Primary Topic
Working Capital and Financial Performance
Type
article
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article

THE The Analysis Of The Impact Of Return On Asset, Return On Equity, And Ratio Of Liquidity, On Overall Company Performance: Case Study In Banking Sector Listed Indonesia Stock Exchange

Meny Huliselan
Indo-Fintech Intellectuals Journal of Economics and Business
Working Capital and Financial Performance
article

THE The Analysis Of The Impact Of Return On Asset, Return On Equity, And Ratio Of Liquidity, On Overall Company Performance: Case Study In Banking Sector Listed Indonesia Stock Exchange

Meny Huliselan
article en

Abstract

This study analyzes the impact of Return on Assets (ROA), Return on Equity (ROE), and Liquidity Ratio on the overall performance of banking companies listed on the Indonesia Stock Exchange. This study uses a quantitative approach with a correlation research design. Through purposive sampling technique, 10 companies listed on the IDX were obtained as research samples. Using multiple linear regression analysis, the results show that ROA and ROE have a significant positive effect on company performance, which emphasizes the important role of profitability in financial success. However, Liquidity Ratio does not significantly affect performance, indicating that short-term liquidity management alone is not the main determinant of banking sector performance. These findings provide valuable insights for investors, financial managers, and policy makers in formulating strategies to improve banking sector growth. Future research can explore additional financial and non-financial factors to develop a more comprehensive framework for assessing company performance.

Indo-Fintech Intellectuals Journal of Economics and BusinessVol. 4(6)
Openalex Percentile: Top 55%
Working Capital and Financial Performance
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