DOI: 10.36347/sjebm.2018.v05i08.003

Pages: 727-733

This study aims to examine the effect of Capital Structure (DER), Credit Efficiency (BOPO), Non Performance Loan (NPL), and Capital Adequacy Ratio (CAR), on the profitability of banking companies in Indonesia. The sample of this study consisted of 10 banks that have the largest assets of the study population namely banking companies listed on the Indonesia Stock Exchange (IDX) from 2010 to 2016. Based on the results of the analysis showed that: 1) Capital Structure (DER) has a negative effect but not significant to profitability in banking companies on the Indonesia Stock Exchange, 2) BOPO does not have a negative and significant effect on profitability in banking companies on the Indonesia Stock Exchange, 3) Non-Performing Loans have no negative effect on profitability in banking companies on the Indonesia Stock Exchange, 4) Capital Adequacy Ratio influences negatively but not significantly on Profitability in banking companies on the Indonesia Stock Exchange.