Effect of Capital Aquency Ratio, Non-Performing Financing, Operational Efficiency Ratio, Financing to Deposit Ratio on Financial Performance of Sharia Banks

Abstract

The purpose of this study was to determine the relationship between Return On Assets (ROA) and the variables Capital Aquency Ratio (CAR), Non-Performance Ratio (NPF), Operational Efficiency Ratio (OER), and Financing to Deposit Ratio (FDR). This study employs quantitative explanatory research as its method of investigation. This study uses annual secondary data for January 2019 through December 2021. EVIEWS 12 panel data regression was used for the analysis. The test result of t shows that Capital Aquency Ratio (CAR) variable significantly affects Return On Assets (ROA). Non-Performing Ratio (NPF) has a positive and insignificant effect on Return On Assets (ROA). Operational Efficiency Ratio (OER) has a negative and significant impact on Return On Assets (ROA), and Financing to Deposit Ratio (FDR) has a negative and insignificant effect on Return On Assets (ROA). On the country, the F test results show that the independent variable Capital Aquency Ratio (CAR), Non-Performing Ratio (NPF), Operational Efficiency Ratio (OER), and Financing to Deposit Ratio (FDR) simultaneously have a significant effect on Return On Assets (ROA).