THE INFLUENCE OF LIQUIDITY ON PROFITABILITY IN INDONESIAN PEOPLE'S BANK (PERSERO) TBK FOR THE PERIOD 2015-2023
Abstract
The purpose of this research is to determine whether liquidity (LDR) affects profitability (ROA) at PT Bank Rakyat Indonesia (Persero) Tbk. The method used is the quantitative method, to test the influence of the independent variable on the dependent variable. The population of this study consists of all financial report data from PT Bank Rakyat Indonesia (Persero) Tbk from 2015 to 2023 on a quarterly basis, and the sample taken includes the balance sheet and income statement. The data collection technique used is documentation, with the analyzed data employing financial ratios and processed through simple linear regression equations. The research results indicate that Liquidity (LDR) has a negative and insignificant effect on Profitability (ROA). In other words, fluctuations in LDR do not directly affect profitability (ROA), so banks should consider other factors that may be more dominant in influencing the profits of Bank Rakyat Indonesia (Persero) Tbk.
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