Analysis of Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), and Net Interest Margin (NIM) in Predicting Financial Distress in Financial Reports of PT. Bank Rakyat Indonesia (Persero) Tbk

Abstract

The present work investigates and predicts the condition of financial distress in PT Bank Rakyat Indonesia (persero) Tbk, Unit Wonosari. All data, comprising quantitative and qualitative data, were analyzed based on the financial ratio.  These data were retrieved from observation and direct interviews. Based on the data analysis, the hypothesis stating that PT Bank Rakyat Indonesia (persero) Tbk Unit Wonosari did not experience financial distress was accepted. This is because the results of the measurement of CAR, NPL, and NIM of the bank are in good condition (CAR and NIM fell under a very good category, and NPL fell under the good category). It can be concluded that PT Bank Rakyat Indonesia (persero) Tbk Unit Wonosari did not experience financial problems.