Indo-Fintech Intellectuals: Journal of Economics and Business
Vol. 4 No. 6 (2024): Indo-Fintech Intellectuals: Journal of Economics and Business (2024)

THE The Analysis Of The Impact Of Return On Asset, Return On Equity, And Ratio Of Liquidity, On Overall Company Performance: Case Study In Banking Sector Listed Indonesia Stock Exchange

Huliselan, Meny (Unknown)



Article Info

Publish Date
22 Dec 2024

Abstract

This study analyzes the impact of Return on Assets (ROA), Return on Equity (ROE), and Liquidity Ratio on the overall performance of banking companies listed on the Indonesia Stock Exchange. This study uses a quantitative approach with a correlation research design. Through purposive sampling technique, 10 companies listed on the IDX were obtained as research samples. Using multiple linear regression analysis, the results show that ROA and ROE have a significant positive effect on company performance, which emphasizes the important role of profitability in financial success. However, Liquidity Ratio does not significantly affect performance, indicating that short-term liquidity management alone is not the main determinant of banking sector performance. These findings provide valuable insights for investors, financial managers, and policy makers in formulating strategies to improve banking sector growth. Future research can explore additional financial and non-financial factors to develop a more comprehensive framework for assessing company performance.

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Journal Info

Abbrev

ifi

Publisher

Subject

Humanities Economics, Econometrics & Finance Social Sciences

Description

Indo-Fintech Intellectuals: Journal of Economics and Business (IFI-JEB) is a fully refereed (double-blind peer review) and an open-access online journal for academics, researchers, graduate students, early-career researchers and students, published by Lembaga Intelektual Muda (LIM) Maluku. IFI-JEB ...