PENGARUH CURRENT RATIO DAN NON PERFORMING LOAN TERHADAP RETURN ON EQUITY PADA BANK BUMN

Abstract

Conventional banks listed on the Indonesia Stock Exchange (IDX) serve as important indicators in assessing national economic stability and performance. Profitability is a key measure of banking performance, commonly assessed using Return on Equity (ROE) to evaluate a bank’s ability to generate profit from shareholders’ equity. This study aims to analyze the effect of the Current Ratio and Non-Performing Loans (NPL) on ROE in State-Owned Banks. The research employs a quantitative approach using secondary data derived from financial statements. Data analysis was conducted using SPSS, including descriptive statistics, classical assumption tests, multiple linear regression, t-test, F-test, and coefficient of determination. The results indicate that both the Current Ratio and NPL partially have a positive and significant effect on ROE. Simultaneously, both variables also show a positive and significant influence on ROE. The Adjusted R² value of 0.271 suggests that 27.1% of the variation in ROE can be explained by the Current Ratio and NPL, while the remaining 72.9% is influenced by other variables outside the research model