Leveraging Financial Ratio Analysis as a Business Intelligence Tool: Profitability, Liquidity, and Financial Performance in Islamic Banking

Wan Salsabilla Maharani Putri (1) , Taufiq Rahmat (2)
(1) Department of Management, Al-Ghifari University, Bandung, Indonesia,
(2) Department of Management, Al-Ghifari University, Bandung, Indonesia
https://doi.org/10.53675/icosei.v1i1.1662
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Issue
Vol. 1 No. 1 (2025)
Submitted
2025-08-27
Published
2025-10-07
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Abstract

The integration of Business Intelligence (BI) into financial management has become essential for enhancing decision-making processes in the banking sector. This study investigates how profitability and liquidity, measured respectively by Return on Assets (ROA) and Current Ratio (CR), influence the financial performance of PT. Bank Muamalat Indonesia Tbk, an Islamic banking institution. Using a quantitative approach, secondary financial data from 2019 to 2023 were analyzed through descriptive statistics, classical assumption tests, and multiple regression analysis. The findings reveal that ROA exhibits a significant positive relationship with financial performance, with a regression significance value of p = 0.047 (< 0.05) and an adjusted R² of 0.848, indicating that 84.8% of the variation in performance can be explained by the model. This result confirms that efficient utilization of assets generates higher returns and strengthens stakeholder confidence. Conversely, CR shows no significant partial effect, with a p = 0.610 (> 0.05), and when tested simultaneously with ROA, yields an F-statistic probability of 0.0755 (> 0.05), suggesting that liquidity, in this context, does not significantly drive financial performance. These results highlight the dual role of financial ratio analysis as both a diagnostic and strategic instrument within BI frameworks. By embedding such analytics into BI dashboards, Islamic banks can continuously monitor financial health, detect early warning signals, and align resource allocation with performance goals. The study contributes to the growing body of literature on BI applications in Islamic banking by demonstrating how traditional financial metrics, when integrated into digital intelligence systems, can yield actionable insights for sustainable growth and competitive advantage.

Authors

Wan Salsabilla Maharani Putri
Department of Management, Al-Ghifari University, Bandung, Indonesia
Taufiq Rahmat
Department of Management, Al-Ghifari University, Bandung, Indonesia

How to Cite

Leveraging Financial Ratio Analysis as a Business Intelligence Tool: Profitability, Liquidity, and Financial Performance in Islamic Banking. (2025). Proceeding International Conference On Sustainable Environment And Innovation (ICOSEI), 1(1). https://doi.org/10.53675/icosei.v1i1.1662

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