Cakrawala : Management Science Journal
Vol. 1 No. 2 (2024): Cakrawala : Management Science Journal - September

The Effect of Capital Structure and Time Interest Earned Ratio on Profitability: Case Study of the Five Largest Banks in Indonesia for the Period 2020-2023

Karondeng, Nesa (Unknown)
Kumalasari, Aida Nafiza (Unknown)
Tambunan, Ronia (Unknown)



Article Info

Publish Date
30 Sep 2024

Abstract

This study aims to analyse the effect of Capital Structure and Time Interest Earned (TIE) Ratio on Profitability, a case study of the five largest banks in Indonesia during the 2020-2023 period. The research method used is quantitative research with a multiple linear regression approach. The data used in this study are secondary data from the bank's annual financial statements through the website www.idx.co.id. The independent variable in this study is Capital Structure measured by Debt to Equity Ratio (DER) and Time Interest Earned (TIE) Ratio, while the dependent variable is Profitability measured by Return on Assets (ROA). The results showed that Capital Structure has no positive influence on Profitability and Time Interest Earned Ratio has a positive influence on bank Profitability. Higher capital structure tends to have less effect with lower profitability, while higher Time Interest Earned Ratio is associated with increased profitability. The population in this study are the five largest banks in Indonesia for the period 2020 - 2023. Sampling using saturated sampling technique

Copyrights © 2024






Journal Info

Abbrev

cakrawala

Publisher

Subject

Economics, Econometrics & Finance

Description

Cakrawala: Management Science Journal is a publication that contains scientific articles related to management science. This journal is used by researchers, academics, health practitioners, and students in accessing and sharing the latest knowledge and findings in the field of management science ...