Abstract:
This research objective is to empirically prove the influence of liquidity ratio on
profitability ratio in Indonesian commercial banks. The researcher uses loan to
deposit ratio, cost to income ratio and capital adequacy ratio to measure the
liquidity ratio. This research has implement quantitative method through
purposive sampling with panel data regression using Eviews9. The researcher
collects the data from official website of each bank and Indonesia Stock
Exchange with 10 banks in 6 years of period. The results of this research are loan
to deposit ratio and capital adequacy ratio has positive significant influence
along with cost to income ratio has negative significant influence on profitability
ratio in Indonesian commercial banks.
