The Effect of Profitability and Company Size on The Capital Structure of PT Telekomunikasi Indonesia Tbk Period 2015-2024

The purpose of this study is to identify and analyze the influence of profitability (measured by Return on Assets/ROA) and firm size on capital structure at PT Telekomunikasi Indonesia Tbk from 2015 to 2024. This research uses secondary data derived from the company’s financial statements. The method applied is descriptive quantitative with a time series approach. Analytical tools include classical assumption tests (normality, multicollinearity, heteroscedasticity, and autocorrelation), multiple linear regression to measure simultaneous effects, coefficient of determination (R²) to assess the contribution of independent variables to the dependent variable, and hypothesis testing to evaluate the significance of each variable’s influence. The results show that ROA has a negative effect on capital structure. This indicates that the company’s decision in determining the composition of debt and equity is not dependent on the level of profit earned. Firm size also has a negative effect on capital structure, meaning that an increase in Telkom’s assets does not necessarily alter the proportion of debt and equity. These findings provide important implications for corporate management in formulating effective financing strategies.