Abstract
A bank's financial performance is an indicator that reflects the success of a bank in managing its financial activities in accordance with applicable regulations. The purpose of this research is to measure and analyze the liquidity ratio and its effects on profitability ratios, both directly and indirectly through activity ratios. The analysis was conducted using secondary data in the form of annual report data and quarterly reports from state-owned banks for the period 2018 to 2022. Liquidity ratios are measured by the Loan to Deposit Ratio (LDR), profitability ratios are measured by Return on Assets (ROA), and activity ratios are measured by the Total Assets Turnover (TATO) ratio. The test results show that LDR is negatively related and has no significant effect on profitability. TATO has a positive and significant effect on ROA. If TATO increases by 1%, then ROA will increase by 0.36%. Additionally, LDR is negatively related to ROA through TATO, where an increase in LDR and TATO by 1% will significantly reduce ROA by 0.06%
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