INTERNAL AND EXTERNAL FACTORS ON PROFITABILITY WITH CREDIT RISK AS MEDIATION

with credit risk as a mediating factor. The purpose of this study is to provide insight into the importance of managing internal and external factors effectively, as well as the role of credit risk in influencing profitability. This study uses a qualitative research methodology by utilizing data from various sources, such as financial reports, industry analysis, and regulatory information. The findings of this study indicate that internal factors, including capital structure, operational efficiency, and internal risk management, significantly affect profitability. Likewise, with external factors, such as market conditions, regulatory changes, and macroeconomic factors, has a significant impact on profitability. In addition, this study also shows that credit risk has a mediating role between internal and external factors with their impact on profitability. Effective credit risk management, through careful credit evaluation, periodic monitoring, and appropriate risk mitigation strategies, is essential to increase profitability. This research provides valuable insights for managers in optimizing internal factors, overcoming external challenges, and making effective use of credit risk mediation to increase company profitability. through careful credit evaluation, periodic monitoring, and appropriate risk mitigation strategies, it is essential to improve profitability. This research provides valuable insights for managers in optimizing internal factors, overcoming external challenges, and making effective use of credit risk mediation to increase company profitability. through careful credit evaluation, periodic monitoring, and appropriate risk mitigation strategies, it is essential to improve profitability. This research provides valuable insights for managers in optimizing internal factors, overcoming external challenges, and making effective use of credit risk mediation to increase company profitability.