THE EFFECT OF COMPANY SIZE, TOTAL ASSET TURNOVER (TAT), AND FINANCIAL PERFORMANCE ON PROFIT GROWTH IN BANKING COMPANIES LISTED ON THE BEI IN 2021-2023

Abstract

Banks are considered to have a close relationship with profit growth. Profit growth in this context shows the bank's capacity to manage resources as efficiently as possible to generate profits. When banks show increasing profits, investors, shareholders, and customers tend to trust the bank more because this is considered a sign of good risk management, high-quality assets, and good financial practices. This study aims to determine the effect of financial performance, company size, and total asset turnover on profit growth in banking companies listed on the Indonesia Stock Exchange in 2021–2023. Data processing was carried out using multiple linear regression techniques, traditional assumption testing, descriptive statistical analysis, and hypothesis testing. The results of the analysis show that in the banking companies that are the focus of the study, return on assets (ROA) and total asset turnover (TAT) have a significant effect on profit growth, but company size has no effect on profit growth.