Abstract:
This study aims to see the development of profitability achieved by the company
Bosowa Multi Finance Ltd. and to analyze the effect of credit risk on profitability at Bosowa
Multi Finance Ltd.
In this study the data used is the financial statements of Bosowa Multi Finance
Ltd. in 2012 to 2016 in softcopy obtained directly from the office Bosowa Multi Finance
Ltd., then the financial data is processed into the NPL ratio and ROA ratio that will be the
data for simple linear regression analysis.
Based on the analysis of credit risk proportioned with NPL is still below 5%, it can
be said that Bosowa Multi Finance Ltd. in the last 5 years in controlling non performing loans can be done effectively, it can be seen from the NPL for the last 3 years have
decreased and from the results of regression tests that have been done show credit risk has
a negative and significant impact on profitability. It can be said that the credit risk that
occurs will result in the acquisition profitability ratios of Bosowa Multi Finance Ltd.
decreases, in contrast if credit risk decreases will increase the acquisition profitability
ratio at Bosowa Multi Finance Ltd