Profitability: Impact of Working Capital, Liquidity and Credit Risk

Abstract

This research was conducted to examine the effect of working capital, liquidity and credit risk on profitability. The data analysis technique used is multiple linear regression and the sample used in this study is PT. Bank Mandiri (Persero) Tbk for the period 2010-2018. Based on the normality test, multicollinearity test and heteroscedasticity test, there were no variables that deviated from the classical assumptions. This shows that the available data has met the requirements using the multiple linear regression equation model. The results showed that capital had a significant effect on profitability, liquidity had a significant effect on profitability and credit risk had no effect on profitability at PT. Bank Mandiri (Persero)Tbk. While simultaneously, it shows that working capital, liquidity and credit risk have a significant effect on profitability at PT. Bank Mandiri (Persero) Tbk.