The Effect of Capital Adequacy Ratio (CAR), Financing Ratio to Third Party Funds (FDR), and Operating Costs Per Operating Income (BOPO) in Increasing Profitability (ROA) of the Islamic Banking Industry in Indonesia

Abstract

This study aims to determine the relationship between the Capital Adequacy Ratio (CAR), the Financing Ratio to Third Party Funds (FDR), and Operating Costs Per Operating Income (BOPO) and the Return on Assets (ROA) of the Islamic Banking Industry in Indonesia. This investigation is founded on quantitative data. Evaluation of the research data by descriptive statistical analysis of variables, testing of hypotheses, and testing of hypotheses. Based on the data analysis and discussion, it can be concluded that: 1) Capital Adequacy Ratio and Financing to Deposit Ratio affect Return on Assets; 2) Operating Costs per Operating Income has no effect on Return on Assets; and 3) Overall, the capital adequacy ratio (CAR), the ratio of financing to third party funds (FDR), and the operating costs per operating income (BOPO) have an impact on a company's profitability.