The Influence of Capital Adequacy Ratio, Operating Expenses and Operating Income, as well as Financing to Deposit Ratio on Non-Performing Financing

Abstract

Based on the results of observations the background to this research is the existence of fluctuations in ratios and gaps between theory and reality that occur in Capital Adequacy Ratio (CAR), Operating Expenses and Operating Income, and Financing to Deposit Ratio (FDR) which is thought to affect Non Performing Financing (NPF) at BPRS Harum Hikmahnugraha. This research aims to find out how the effect of CAR, Operating Expenses and Operating Income, and FDR on NPF at BPRS Harum Hikmahnugraha for the 2019-2023 period, both partially and simultaneously. The research objects in this thesis are CAR, Operating Expenses and Operating Income, FDR, and NPF. The type of research is associative quantitative with secondary data types and uses documentation data collection techniques and literature study. The sample in this research is the BPRS Harum Hikmahnugraha quarterly financial reports for the 2019-2023 period. The research results show that CAR have no effect on NPF with a value of −t_count > −t_table (−0,962 > −2,10982) and CAR’s contribution to NPF is 4,9% from the R² test results, Operating Expenses and Operating Income have no effect on NPF with a value of t_count < t_table (1,700 < 2,10982) and the contribution of Operating Expenses and Operating Income on NPF is 13,8% from the R² test results, FDR has a negative effect on NPF with a value of −t_count < −t_table (−2,660 < −2,10982) and FDR’s contribution to NPF is 28,2% from the R² test results. Simultaneously CAR, Operating Expenses and Operating Income, and FDR have a positive affect NPF with value F_count > F_table (4,727 > 3,24) and contribution of CAR, Operating Expenses and Operating Income, and FDR to NPF simultaneously is 46,9% from the R² test results.