LEVERAGE, FIRM SIZE, AND PROFITABILITY: EMPIRICAL EVIDENCE OF PT BANK CENTRAL ASIA TBK 2021–2024 WITH MULTIPLE REGRESSION (ORANGE DATA MINING)

Abstract

This study analyzes the influence of leverage and firm size on profitability at PT Bank Central Asia Tbk (BCA), a bank listed on the Indonesia Stock Exchange, during the 2021–2024 period. The research applies a quantitative approach using secondary data obtained from the company's annual financial statements. Leverage is proxied by the Debt-to-Equity Ratio (DER), firm size is measured using the natural logarithm of total assets [Ln(Total Assets)], and profitability is represented by Return on Assets (ROA). The relationship among variables is examined through multiple linear regression, processed using Orange Data Mining (v3.39.0) to support data processing, visualization, and model estimation. The results indicate that leverage tends to relate negatively to profitability, while firm size tends to relate positively to profitability. These findings suggest that an increase in debt-based funding may be associated with lower asset-based returns, whereas a larger asset base may support improved profit generation. The study provides managerial implications for optimizing funding structure and managing asset growth to maintain bank profitability.