The Effect of Capital Adequacy and Credit Risk on Profitability With Liquidity as a Mediating Variable in Banking Companies Listed on the Indonesia Stock Exchange for the Period 2021-2023

The purpose of this study was to determine the effect of capital adequacy and credit risk on profitability with liquidity as a mediating variable. The study's data were examined using the regression analysis method and the sobel test for the mediating variable. The population used in this study is annual data from capital adequacy, credit risk, profitability and liquidity of banks in Indonesia for the period 2021-2023, namely 46 companies. The results of this research are Capital adequacy and credit risk have no significant effect on profitability, while liquidity has a positive and significant effect on profitability. On the other hand, capital adequacy has a significant positive effect on liquidity, while credit risk has a negative effect on liquidity. Capital adequacy also has a significant positive effect on profitability through liquidity, while credit risk has no effect on profitability through liquidity.