<![CDATA[This research aimed to analyze the effect of capital structure on financial performance at PT. Ace Hardware Indonesia Tbk during the 2020–2025 period. Capital structure was measured using the Debt to Equity Ratio (DER) and Debt to Assets Ratio (DAR), while financial performance was measured using Return on Assets (ROA). This research used a quantitative approach with an associative research design. The data used were secondary data obtained from the annual financial statements of PT. Ace Hardware Indonesia Tbk. The data analysis techniques included ratio analysis, descriptive statistics, classical assumption tests, multiple linear regression analysis, t-test, F-test, and the coefficient of determination. The results showed that, partially, the Debt to Equity Ratio (DER) had no significant effect on Return on Assets (ROA), with a significance value of 0.231, while the Debt to Assets Ratio (DAR) also had no significant effect on Return on Assets (ROA), with a significance value of 0.267. Simultaneously, DER and DAR had no significant effect on ROA, with a significance value of 0.429. The coefficient of determination ($\text{R}^2$) of 0.431 indicated that 43.1% of the variation in ROA was explained by DER and DAR, while the remaining 56.9% was influenced by other factors outside the scope of this research. These results indicated that capital structure was not a primary factor influencing the company’s financial performance during the research period. Keywords: Capital Structure, Debt to Equity Ratio, Debt to Assets Ratio, Return on Assets, Financial Performance]]>
