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PENGARUH STRUKTUR MODAL TERHADAP PROFITABILITAS (STUDI KASUS PADA PERUSAHAAN KEUANGAN SUB SEKTOR BANK YANG TERDAFTAR DI BEI TAHUN 2017-2019)

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ABSTRACT THE EFFECT OF CAPITAL STRUCTURE ON PROFITABILITY (CASE STUDY ON FINANCIAL COMPANIES IN BANK SUB SECTOR THAT LISTED ON INDONESIA STOCK EXCHANGE 2017-2019) Written by: Edbert Kay Manggohi NIM: 1732101 Profitability was an indicator in determining the good or bad performance of a company. Return on Equity (ROE) was one of the profitability ratios that can measure the company's performance to generate profits using the company's total equity. Profitability can be influenced by the company's capital structure, which was a comparison between foreign capital and own capital. Debt to Equity Ratio (DER) used as an indicator of capital structure. This study aimed to determine the effect of capital structure on profitability in bank sub-sector financial companies listed on the Indonesia Stock Exchange in 2017 - 2019. This research was conducted using descriptive statistical methods, correlation coefficient analysis, determination coefficient analysis, simple linear regression, and significance test (t test). The data for this study were published annual financial reports of the bank sub-sector companies. The secondary data was processed using SPSS 25, then a conclusion was made. The results of this study indicated that 15 companies have DER values below the average value and 11 other companies were above average. This study also shown that 16 companies had an ROE value above the average value and 10 other companies were below average. Therefore, there was a significant effect between capital structure on profitability Keywords: capital structure, profitability, debt to equity ratio, return on equity v