<![CDATA[This study aims to examine the impact of liquidity and leverage on the profitability of the Islamic commercial banking industry in Indonesia from 2014 to 2023, using empirical analysis based on Trade-Off Theory. Leverage is measured by the Debt to Assets Ratio (DAR), while liquidity is represented by the Current Ratio (CR) and Financing to Deposit Ratio (FDR). Profitability is assessed through Return on Assets (ROA). The research utilizes secondary data from annual financial statements of 10 Islamic commercial banks registered with the Financial Services Authority (OJK). Due to limited data availability, non-probability sampling was employed. A quantitative explanatory approach with panel data regression was used for analysis. Results indicate that collectively, DAR, CR, and FDR significantly affect profitability. However, individually, only DAR has a significant influence, while CR and FDR do not. These findings update the understanding of profitability determinants in Indonesia’s Islamic banking sector.]]>
Copyrights © 2025
