The Influence of Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), Return on Assets (ROA), and Loan To Deposit Ratio (LDR) on Financial Sustainability in Regionally Owned Enterprises (BUMD) Bank Pasar Kulon Progo for the 2018-2023 Period

Eva Farida Kristin Wijayanti; Bangun Putra  Prasetya

doi:10.32734/jomas.v4i3.17458

Authors

Eva Farida Kristin Wijayanti Universitas Widya Mataram
Bangun Putra Prasetya Management Department, Universitas Widya Mataram, 55132, Indonesia

DOI:

https://doi.org/10.32734/jomas.v4i3.17458

Keywords:

Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Return on Assets (ROA), Loan to Deposit Ratio (LDR), Financial Sustainability Ratio (FSR)

Abstract

Bank Pasar Kulon Progo plays a key role in promoting regional economic growth
and improving welfare. To maintain financial stability, it is essential to assess
factors influencing financial sustainability. This study examines the impact of
Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), Return on Assets
(ROA), and Loan to Deposit Ratio (LDR) on the Financial Sustainability Ratio
(FSR) of Bank Pasar Kulon Progo from 2018 to 2023. A quantitative approach
was used, analyzing financial report data with purposive sampling. Multiple
linear regression was applied to assess the relationships between the variables.
The results show that CAR, NPL, ROA, and LDR have a significant impact on
FSR, collectively explaining 79.5% of its variation (R² = 0.795). The remaining
20.5% is influenced by other factors outside the model. These findings suggest
that effective management of CAR, NPL, ROA, and LDR is crucial for ensuring
the financial sustainability of Bank Pasar Kulon Progo.