PENGARUH RETURN ON ASSET DAN LOAN TO DEPOSIT RATIO TERHADAP FINANCIAL SUSTAINABILITY RATIO PADA BANK UMUM BUKU 4 YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2020-2023

Abstract

The objective is to analyze the relationship between Financial Sustainability Ratio and Return on Assets and Loan to Deposit Ratio. Ten BUKU 4 Commercial Bank companies listed on the Indonesia Stock Exchange serve as the population for this study, and a total of 160 observational data points were collected from them between 2020 and 2023. Saturated sampling strategy was used as the sampling process. The current investigation used SPSS 27 for computational analysis and multiple linear regression analysis. The results of this study indicate that Financial Sustainability Ratio and Return on Assets have a fairly large and partly favorable relationship. In the same vein, Financial Sustainability Ratio is positively and significantly influenced by Loan to Deposit Ratio. Both Return on Assets and Loan to Deposit Ratio have positive and statistically significant effects on Financial Sustainability Ratio. More than half of the variance in Financial Sustainability Ratio can be explained by two independent variables, Return on Assets and Loan to Deposit Ratio. Other factors, such as firm size, net interest margin, non-performing loans, and capital adequacy ratio (CAR), account for the remaining 43%.