Effect Of Capital Adequacy Ratio Research Articles

Pengaruh Kecukupan Modal, Risiko Kredit, Risiko Likuiditas dan Pengelolaan Aset Produktif Terhadap Profitabilitas : Studi Keuangan pada Bank Umum Swasta Nasional yang Terdaftar di Bursa Efek Indonesia Periode 2019-2022

A bank's profitability is an important indicator of its financial health and future aspirations. Increasing profitability requires effective, efficient management and building public trust. The aim of this research is to determine the effect of Capital Adequacy Ratio, Non Performing Loans, Loan to Deposit Ratio, and Net Interest Margin on Returns on Assets for the period 2019 to 2022. The population in this research is financial reports on the Indonesia Stock Exchange (BEI). The objects of this research are Capital Adequacy Ratio (X1), Non Performing Loans (X2), Loan to Deposit Ratio (X3), Net Interest Margin (X4) and Return On Assets (Y). The research method used is descriptive and associative with a quantitative approach. The data analysis techniques used in this research are statistical and descriptive. Which uses a number of tests such as the classic assumption test which consists of normality test, multicollinearity, heteroscedasticity, multiple linear regression analysis, multiple correlation coefficient, coefficient of determination, hypothesis test (t test) and (f) test using the SPSS application. The research results show that from the t test (partial) the Capital Adequacy Ratio partially shows a result of 0.019 where tcount is 0.019<ttable 2.021 with a significance value of 0.019, next for Non Performing Loans shows Tcount<Ttable (0.145<2.021) with a significance value of 0.145, then for Loan to Deposit Ratio shows a Tcount of 0.035<Ttable 2.021 with a significance value of 0.035 and Net Interest Margin shows a Tcount of 0.001<Ttable 2.021 with a significance value of 0.001. The conclusion is that CAR, NPL, LDR partially have no influence on Return On Assets, while NIM partially has an influence on profitability.

Dampak Rasio Kecukupan Modal dan Risiko terhadap Profitabilitas pada Bank Konvensional di Indonesia

Purpose: To determine the effect of capital adequacy ratio, market risk, credit risk, liquidity risk, operational risk, bank size, and other variables on banking profitability in Indonesia. Methodology: Panel data regression analysis; purposive sampling; capital adequacy ratio, market risk, credit risk, liquidity risk, operational risk, bank size as instruments; 39 banks listed on Indonesia Stock Exchange; return on assets as dependent variable. Results: Capital adequacy ratio and bank size have a positive and significant influence on profitability. Credit risk and operational risk have a significant negative effect. Market risk and liquidity risk have no significant effect. Limitations: The study is limited to data from banks listed on the Indonesia Stock Exchange between 2018-2024, so it may not reflect conditions outside this period or region. Contribution: This research is useful in the fields of banking management, corporate finance, and investment strategy.

Factors Affecting Profitability (Study On State-Owned Banks In Indonesia)

The research aims to determine the effect of Capital Adequacy Ratio, Non-Performing Loans, Loan to Deposit Ratio and Net Interest Margin on profitability as measured by ROA. The study was conducted at banks owned by the Government of the Republic of Indonesia or known as Bank BUMN (State-Owned Enterprises) which consists of four banks, namely Bank Mandiri (Bank Mandiri), Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) and Bank Tabungan Negara (BTN). The method of the research was quantitative research, analysis secondary data. It was conducted from the financial reporting Bank BUMN period from 2011 to 2022. By multiple linear regression analysis, it was found that CAR has a significant negative effect, NPL has a significant negative effect, LDR has a significant positive effect, and NIM has a significant positive effect on profitability. Furthermore, the coefficient of determination shows that the model is able to explain 84.90% of the variation in the four dependent variables.

PENGARUH CAPITAL ADEQUECY RATIO DAN SOLVABILITAS TERHADAP PERTUMBUHAN LABA DENGAN SUKU BUNGA SEBAGAI VARIABEL MODERASI PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BEI PERIODE 2019-2022

This study aims to determine the effect of Capital Adequacy Ratio and Solvency on Profit Growth with Interest Rates as a Moderating Variable in Banking Companies Listed on the IDX for the 2019-2022 Period. The data in this study are secondary data obtained from financial reports. The data collection method in this study is descriptive and quantitative. The population in this study is banking companies listed on the Stock Exchange for 4 years from 2019-2022. The sample used in this study was 9 companies using the Purposive sampling technique. Based on the hypothesis test using the Smart PLS 3.0 application that has been carried out, the results show that the Capital Adequacy Ratio has a positive and significant effect on profit growth, and Solvency has a positive but not significant effect on profit growth. The interest rate moderating variable in this study shows that interest rates significantly moderate the Capital Adequacy Ratio on profit growth and interest rates do not significantly moderate solvency on profit growth.

Pengaruh Rasio Capital Adequacy Ratio, Net Interest Margin, Non Performing Loan Terhadap Return on Asset Bank Konvensional Periode 2014 - 2022

This research serves to fill in the gaps in knowledge from previous studies that discuss different opinions about each ratio. The focus is on the phenomenon of gaps in the relationship between ROA and bank financial performance. The purpose is to evaluate the effect of Capital Adequacy Ratio, Net Interest Margin, and Non Performing Loan on ROA both separately and together at these banks during the period 2014-2022. This research method is a quantitative approach purposive sampling technique to select a sample consisting of five leading conventional banks in Indonesia. The results of the analysis using multiple linear regression and hypothesis testing, the effect of Capital Adequacy Ratio on ROA is not significant, Net Interest Margin has a significant positive effect on ROA, Non Performing Loan on ROA has a significant negative effect, Capital Adequacy Ratio, Net Interest Margin, Non Performing Loan as a whole has an effect on ROA.

The Effect of Capital Adequacy Ratio, Return on Asset, Loan to Deposit Ratio and Non Performing Loan on Stock Prices of Banking Companies Listed on the Indonesia Stock Exchange in the 2022 Period

This study aims to determine the effect of Capital Adequacy Ratio, Return On Assets, Loan To Deposit Ratio and Non Performing Loan on Stock Prices in Companies listed on the IDX for the 2022 Period. The research method used is a descriptive method with a quantitative approach. The population in this study is the financial statements of Conventional Banking. The data method used in this study is multiple linear regression analysis, classical assumption tests including normality tests, multicollinearity tests, heteroscedasticity tests. Significance tests include t-tests, as well as correlation coefficients and determination coefficients at a significance level of 5%. Data are processed and analyzed using the SPSS version 27 application program. The results of this study indicate that partially the Capital Adequacy Ratio has a significant negative effect on stock prices, with a Tcount value of -2.875 <0.05. Partially, Return On Assets has a significant positive effect on Stock Price, with a calculated T value (7.515) >< Ttable 2.034 with a significance value of 0.000 < 0.05. Partially, Loan to Deposit Ratio has a significant negative effect on stock price, with a calculated T value (- 3.684) < Ttable 2.034 with a significance value of 0.001 < 0.05. Partially, Non Performing Loan has a significant negative effect on Stock Price, with a calculated T value (-2.991) < Ttable 2.034 with a significance value of 0.005 < 0.05.

Analysis of Capital Adequacy Ratio, Operating Expenses Operating Income, Non-Performing Financing, Financing to Deposit Ratio, and Net Operating Margin Return on Assets at Sharia Commercial Banks

This study was conducted to see the effect of Capital Adequacy Ratio (CAR), Operating Costs to Operating Income (BOPO), Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR), and Net Operating Margin (NOM) on Return on Assets (ROA) at Sharia Commercial Banks. The analysis method used is panel regression, the data used is secondary data from the financial statements of Islamic Commercial Banks for the 2021-2023 period. The results of the analysis stated that CAR, BOPO, NPF, FDR, and NOM have a simultaneous influence on ROA in Sharia Commercial Banks. Partially CAR, NPF, and FDR do not affect ROA. While NOM has a significant positive influence on ROA, on the contrary, BOPO has a significant negative influence on ROA. The results of this study provide important information for bank management in managing these factors to improve financial performance and bank profitability.

The Effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Non-Performing Loan (NPL) Against Return on Asset (ROA) With Net Interest Margin (NIM) as an Intervening Variable in BUMN Bank Listed on the Indonesia Stock Exchange 2018-2022

This study aims to determine the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Non- Performing Loan (NPL) in the Return on Asset (ROA) with Net Interest Margin (NIM) as an Intervening Variable in BUMN Bank Listed on the Indonesia Stock Exchange 2018-2022. The independent variable used in this study is Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Non-Performing Loan (NPL). The dependent variable used is Return On Asset (ROA). The intervening variable used is Net Interest Margin (NIM). The method used in this study uses nonprobability sampling technique, using secondary and quantitative data. The analysis technique in this research uses Smart PLS 3.0 by analysing the inner model such as the coefficient of determination, hypothesis testing and path analysing. The research show that, CAR has a significant and positive effect on NIM, LDR and NPL have no significant and unidirectional effect on NIM, CAR and LDR have no significant and unidirectional effect on ROA, NPL and NIM have a significant and unidirectional effect on ROA, NIM can mediate the influence of the variable CAR on ROA, NIM cannot mediate the influence of the LDR and NPL variables on ROA.

The Effect of Capital Adequacy Ratio and Sukuk Sales on Profitability at Bank Muamalat

The Effect of Capital Adequacy Ratio and Sukuk Sales on Profitability at Bank Muamalat

Determinant of Return On Invested Capital

The banking sector is one of the most important sectors for the modern economy, because almost every industry involved in financial activities always requires banking services. This encourages the banking industry to function properly as seen from the capital it has. The amount of Third Party Funds for commercial banks continues to increase, reflecting that banking growth is getting better. Therefore, it is important to assess banking financial performance as measured by banking financial ratios. This is the reason why researchers are interested in conducting research on what influences the ROIC of Conventional Commercial Bank Companies. This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Net Interest Margin (NIM), Cash Ratio (CR), and Intellectual Capital (IC) on ROIC in Conventional Commercial Bank companies listed on the Indonesia Stock Exchange for the 2017-2021 period. The type of research used in this research is quantitative research with non-probability sampling technique using purposive sampling design. The population in this study were 46 banking sub-sector companies listed on the Indonesia Stock Exchange. The type of data used in this study is secondary data in the form of annual financial reports of conventional commercial bank companies listed on the Indonesia Stock Exchange for 2017-2021. The data analysis technique used is the eviews 10 program. The processing method used in this study is panel data regression analysis. The results showed that partially there was a significant influence on Net Interest Margin (NIM) (regression coefficient value of 2.112874, t count value 2.973486 > t table 2.034515 and a significant value of 0.0070 <0.05) and Cash Ratio (CR) ( regression coefficient value of 0.001887, t count value 4.640386 > t table 2.034515 and a significance value of 0.0001 <0.05) on ROIC. While Capital Adequacy Ratio (CAR) (t-count value 0.598328 <t-table 2.034515 and significance value 0.5557> 0.05), Loan to Deposit Ratio (LDR) (t-count value 1.310563 <t table 2.034515 and significance value 0.2035 > 0.05) , Non Performing Loans (NPL) (t count value 0.393639 < t table 2.034515 and a significance value of 0.6976 > 0.05), and Intellectual Capital (IC) (t count value 0.948279 < t table 2 .034515 and a significance value of 0.3533 > 0.05) partially had no effect on ROIC. In addition, the results of simultaneous research Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Net Interest Margin (NIM), Cash Ratio (CR), and Intellectual Capital (IC) affect ROIC is indicated by the calculated f value of 65.88711 > f table of 2.445259 and a significance value of 0.000000 <0.05. Keywords: CAR, LDR, NPL, NIM, IC, ROIC

Pengaruh CAR, NPL, ROA, LDR, dan Ukuran Perusahaan terhadap Harga Saham pada Perbankan Konvensional di BEI (2020–2021)

The assessment of a company's performance can be reflected in its stock value. In early 2020, particularly on March 2, the impact of the COVID-19 pandemic was felt in Indonesia, leading to a decline in stock prices on the Indonesia Stock Exchange (IDX). This research aims to examine the simultaneous and partial effects of Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), Return On Asset (ROA), Loan to Deposit Ratio (LDR), and Company Size on stock prices in conventional banking companies listed on the IDX during the period of 2020–2021. The research method employed is quantitative, utilizing secondary data from 40 banking companies that meet the criteria out of a total of 45 listed on the IDX. The results of the study indicate that partially, CAR has a positive effect on stock prices, while NPL, ROA, LDR, and Company Size have a negative impact. Simultaneously, CAR, NPL, ROA, LDR, and Company Size collectively have a positive influence on stock prices.

The effect of capital adequacy ratio, loan-to-deposit ratio, non-performing loan, and operational efficiency on the rate of return on assets with allowance for impairment losses as moderating variable in conventional banks listed on the Indonesian stock

This study is quantitative research focusing on the effect of specific financial ratios, namely the capital adequacy ratio, loan-to-deposit ratio, non-performing loan, and operating costs on operating income ratio (BOPO), on the return on asset level with impairment loss reserves as moderating variables. The population in this study were conventional banking companies listed on the Indonesia Stock Exchange (IDX) during the 2018-2021 period. A sample of 26 companies was selected using purposive sampling. The data was processed using moderation regression analysis. The results showed that the capital adequacy ratio significantly positively affects return on assets. The loan-to-deposit ratio does not affect the return on assets. Non-performing loans and operating costs of operating income significantly negatively affect the return on assets. Provision for impairment losses as a moderating variable weakens the effect of the capital adequacy ratio variable and operating cost of operating income on return on asset. Impairment loss reserve does not moderate the impact of loan-to-deposit ratio and non-performing loan variables on return on asset.

Pengaruh Capital Adequacy Ratio, Return on Assets, Loan to Deposit Rasio dan Biaya Operational Pendapatan Operational Terhadap Non-Performing Loan pada Bank Konvensional

In the process of providing credit, banks are faced with the risk of bad debts, where the borrower is unable or unwilling to repay the loan that has been granted. This risk can be caused by economic factors such as slowing growth, market instability, or a financial crisis. In addition, internal factors such as imprudent credit policies, poor risk management, or the bank's inability to conduct effective monitoring can also contribute to bad debt risk. This study aims to analyze the effect of capital adequacy ratio, return on assets, loan-to-deposit ratio and operating expenses on non-performing loans in conventional banks. The type of research used is quantitative with a cross-sectional approach. The number of conventional banks sampled was 20, with an observation period of 2021–2022, using quarterly data. The data analysis technique uses multiple linear regression analysis using three alternative regression models, namely the common effect model (CEM), fixed effect model (FEM), and random effect model (REM). The application used for testing is e-Views 12. Hypothesis testing is done with the t test. The results showed that the final model chosen was the REM) The panel data regression model on the percentage of NPL data estimated with the REM is shown in the equation. NPL = 1.139 - 0.028*CAR - 0.002*ROA + 0.012*LDR + 0.018*BOPO. CAR variables have a negative and significant effect on NPL; ROA has a negative and significant effect on NPL; and LDR has a positive and significant effect on NPL. BOPO has a negative and significant effect on NPL.

Analysis of Factor that Affect Financial Performance of PD. BPR Bahteramas Konawe

This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Performing Loan (NPL), and Operating Costs and Operating Income (BOPO) on financial performance, as measured by Return On Assets (ROA), at PD. BPR Bahteramas Konawe. Using secondary data from the annual report of PD. BPR Bahteramas Konawe during the 2018-2022 period, this study applies multiple linear regression analysis with classical assumption tests and hypothesis testing to evaluate the effect of these variables, both simultaneously and partially, on ROA. The analytical tool used in this research is SPSS version 25. The results showed that CAR, LDR, NPL, and BOPO together had a positive and significant influence on the ROA of PD. BPR Bahteramas Konawe, indicating that increasing these values in accordance with the BPR health standards set by the Financial Services Authority (OJK) contributes to increasing bank profitability. Partially, CAR has a positive but insignificant effect on ROA, while LDR and NPL have a negative but insignificant effect. The significant negative effect of BOPO on ROA indicates that higher operational efficiency contributes to improved bank financial performance. This research provides new insights in banking finance literature regarding the importance of managing capital, liquidity, credit, and operational efficiency in improving bank financial performance, especially for PD. BPR Bahteramas Konawe in the context of OJK regulations.

ANALISIS PENGARUH CAR, FDR, DAN NPF TERHADAP PROFITABILITAS PADA BANK UMUM SYARIAH DI INDONESIA

The purpose of this study is to determine the effect of capital adequacy ratio, financing to deposit ratio, and non-performing financing. Sample selection in this study was carried out by purposive sampling. Based on the criteria, 54 financial statements of Islamic commercial banks were sampled. The data analysis techniques used in this study are descriptive statistical tests, classical assumption tests, multiple linear regression tests, and model feasibility tests. The results of the analysis show that the capital adequacy ratio has a positive effect on profitability, while the financing to deposit ratio does not affect profitability, and then non-performing financing has a negative effect on profitability. Keywords: Profitability, capital adequacy ratio, financing to deposit ratio, and non-performing financing.

PENGARUH CAPITAL ADEQUACY RATIO (CAR), RETURN ON ASSET (ROA), DAN LOAN DEPOSIT RATIO (LDR) TERHADAP HARGA SAHAM PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2014-2021

The share price is largely determined by the supply and demand for shares. This study aims to examine the effect of Capital Adequacy Ratio (CAR) on stock prices in banking companies listed on the Indonesia Stock Exchange in 2014- 2021, test the effect of Return On Assets (ROA), on stock prices in bankingcompanies listed on the Indonesia Stock Exchange For 2014-2021, test the effect of the Loan Deposit Ratio (LDR) on stock prices in banking companies listed on the Indonesia Stock Exchange for 2014-2021, and test the effect of Capital Adequacy Ratio (CAR), Return On Assets (ROA), and Loan Deposits Ratio (LDR) to stock prices in banking companies listed on the Indonesia Stock Exchange in 2014-2021.The analytical tool used in this study is multiple linear regression analysis with a total population of 46 banking companies listed on the Indonesia Stock Exchange. This study used a sample of 18 banking companies listed on the Indonesia Stock Exchange in 2014-2021 with a total of 144 data. The type of research used in this research is associative quantitative. Data processing using the SPSS version 23 program with data testing techniques classic assumption test, correlation test, regression test, coefficient of determination test, partial hypothesis testing (t test) and simultaneous hypothesis testing (F test).The results of the analysis of the Capital Adequacy Ratio (CAR) variable yield tcount (-0.114) > ttable (-1.97705), then H0 is accepted and Ha1 is rejected and the significance value is (0.909 > 0.05). The results of the analysis of the Return On Assets (ROA) variable yield tcount (4.743) > ttable (1.97705), then H0 is rejected and Ha2 is accepted and the significance value is (0.000 <0.05). The results of the analysis of the Loan Deposit Ratio (LDR) variable yield tcount (-0.243) < ttable (- 1.97705), then H0 is accepted and Ha3 is rejected and the significance value is (0.808 > 0.05). Based on the F test, the results of Fcount were 7.557 > Ftable 2.67 with a significance level of 0.000 <0.05, so it was concluded that H0 was rejected and H1 was accepted.Keywords : Stock Price, Capital Adequacy Ratio CAR), Return On Assets (ROA), Loan Deposit Ratio (LDR)

Pengaruh Capital Adequacy Ratio, Profit Sharing Ratio terhadap Return On Asset dengan Non Perfoming Financing sebagai Variabel Moderating pada Bank Umum Syariah di Indonesia

This research aims to determine the effect of Capital Adequacy Ratio (CAR), Profit Sharing Ratio (PSR), on Return on Assets (ROA) with Non-Performing Financing (NPF) as a moderating variable in Islamic Commercial Banks in Indonesia. This type of research is quantitative research with the data source used is secondary data. This research uses annual financial report data from Sharia Commercial Banks in Indonesia for 2017-2021. The research sample is Sharia Commercial Banks in Indonesia in 2017-2022. The sample was selected using a purposive sampling technique to obtain seven Sharia Commercial Banks. Data processing and analysis techniques using Descriptive Statistical Analysis, Classic Assumption Test, Multiple Linear Test, Hypothesis Test and MRA Test. The program used for calculations uses SPSS version 25 and then the results from SPSS are interpreted. Capital Adequacy Ratio (CAR) has a significant influence on Return On Assets (ROA). The results of this research show that the Profit Sharing Ratio (PSR) has a significant effect on Return On Assets (ROA). Capital Adequacy Ratio (CAR) and Profit Sharing Ratio (PSR) simultaneously influence Return On Assets (ROA). The R Square (R2) value obtained was 0.441 or 44.1%, indicating that CAR(X1) and PSR (X2) only had an effect of 44.1%. Meanwhile, 55.9% was influenced by other factors outside the research. Non-Performing Financing (NPF) cannot moderate the influence of Capital Adequacy Ratio (CAR) on Return On Assets (ROA). Non-Performing Financing (NPF) cannot moderate the influence of Profit Sharing Ratio (PSR) on Return On Assets (ROA). Non-Performing Financing (NPF) cannot moderate the influence of Capital Adequacy Ratio (CAR) and Profit Sharing Ratio (PSR) on Return On Assets (ROA).

The Effect of Capital Adequacy Ratio (CAR), Operating Expenses and Operating Income (BOPO), and Net Core Operating Margin (NCOM) on Financial Sustainability Ratio (FSR) in Islamic Banking in Indonesia for the 2017-2021 Period

This study aims to determine the effect of the Capital Adequacy Ratio (CAR), Operating Expenses and Operating Income (BOPO), and Net Core Operating Margin (NCOM) on the Financial Sustainability Ratio (FSR) partially and simultaneously. This study used a quantitative approach. The type of data used is secondary data obtained from the annual financial statements published on the official website of each Sharia Commercial Bank for the 2017-2021 period. The sample in this study amounted to 10 Sharia Commercial Banks in Indonesia selected by purposive sampling method. The data analysis techniques used are descriptive statistical analysis, classical assumption tests, hypothesis tests, and multiple linear regression tests with the help of SPSS software. The results showed that the Capital Adequacy Ratio (CAR) had a partial positive and insignificant effect on the Financial Sustainability Ratio (FSR). In part, BOPO has a negative and significant effect on the Financial Sustainability Ratio (FSR). Partially, the Net Core Operating Margin (NCOM) has a positive and significant effect on the Financial Sustainability Ratio (FSR). Simultaneously, the variables Capital Adequacy Ratio (CAR), Operating Cost and Operating Income (BOPO), and Net Core Operating Margin (NCOM) have a significant effect on the Financial Sustainability Ratio (FSR) and the value of the coefficient of determination (R²) of 0.608 or 60.8%.

FACTORS AFFECTING PROFITABILITY ON BANKING COMPANIES LISTED ON THE IDX

This study aims to obtain empirical evidence about the effects of Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Net Interest Margin (NIM), Current Account Saving Account (CASA), and Operating Expenses to Operating Income (BOPO) on the profitability of banking companies listed on the Indonesia Stock Exchange (IDX) in 2017-2020. This research uses 27 banking companies selected using purposive sampling method. The research data will be processed using the EViews 9.0 program. The results of this research indicate that the NIM has a positive and significant effect on profitability, BOPO has a negative and significant effect on profitability, while CAR, NPL, and CASA have no significant effect on profitability.

Effect of Capital Adequacy Ratio, Non-Performing Financing, Financing to Deposit Ratio, and Operational Expenses on Operational Income on the Profitability of Sharia Banking in Indonesia (2016-2020)

The aim of this research is to analyze effect of capital adequacy ratio, non performing financing, financing to deposit ratio, and operational expenses on operational income on the profitability of Sharia Banking in Indonesia from 2016 to 2020. This research uses quantitative research methods. Population in this study is Sharia Commercial Bank registered with Bank Indonesia obtained from Sharia Banking Statistics via the Financial Services Authority website from 2016 to 2020. Sample used in this research is Sharia Commercial Bank which have been registered with Bank Indonesia since 2014, with using financial reports and Sharia Banking statistics found on the Financial Services Authority website. So, sample in this research is 12 Sharia Commercial Bank. The model used to test this hypothesis is a multiple regression analysis model. The research results show that capital adequacy ratio has a positive and significant effect on the profitability of Sharia Banking in Indonesia from 2016 to 2020. Non performing financing has a negative and insignificant effect on the profitability of Sharia Banking in Indonesia from 2016 to 2020. Financing to deposit ratio has a positive and insignificant effect on the profitability of Sharia Banking in Indonesia from 2016 to 2020. Operational expenses on operational income has a negative and significant effect on the profitability of Sharia Banking in Indonesia from 2016 to 2020. Keywords: Capital Adequacy Ratio, Non-Performing Financing, Financing to Deposit Ratio, Operational Expenses on Operational Income, Profitability