Analysis of the Effect of Profitability Ratios and Liquidity Ratios on Changes in Profit in Indonesian Islamic Banks (BSI) After the Merger (Study on Bank Syariah Indonesia)

Abstract

The use of financial ratio analysis is one of the fundamental indicators to answer several questions related to profit growth. This study aims to determine the effect of profitability ratios and liquidity ratios on changes in profit at Bank Syariah Indonesia (BSI) post-merger, with the hope of being able to provide benefits both theoretically for reference to the development of further research as a source of literature, as well as practically for internal and external parties in considering fundamental aspects related to the financial performance of a company. This type of research is quantitative using multiple linear regression analysis. The population in this study is Islamic banking companies with the sample used is Islamic banking that has done a merger, namely BSI. Regression analysis techniques are carried out using the help of the IBM SPSS statistics 23 software program. The results showed that the profitability ratio measured using ROA has no effect on changes in earnings. The results of testing other profitability ratios measured using ROE also show the results have no effect on profit changes. As well as for the results of testing the liquidity ratio as measured using CR also show results that have no effect on changes in profit. This indicates that there are other indicators that are more relevant to be tested for their influence on changes in a company's profit.