Observational analysis examines credit risk, capital adequacy, and liquidity on profitability in banks, suggesting significant influences.
Profitability is the company's ability to demonstrate profit generation or a measure of the effectiveness company management in each period. Profitability in this research is proxied by ROA, which is a ratio that shows the company's ability to generate profits on the total assets used. This research aims to determine the effect of credit risk, capital adequacy and liquidity on profitability. This research was conducted at the Bank Perkreditan Rakyat (BPR) Gianyar Regency for the 2020-2022 period and the total research sample was 24 BPRs with a non-probability sampling method using saturated sampling techniques. The data analysis technique used in this research is multiple linear regression analysis using the IBM SPSS version 24 program tool. The results of the analysis show that 1) Credit risk has no effect on profitability. 2) Capital adequacy has a positive and significant effect on profitability. 3) Liquidity has a positive and significant effect on profitability.
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Ardiningsih et al. (2025) studied this question.
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