<![CDATA[Rising leverage ratios can be misread as increased financial risk when they stem from changes in the composition of liabilities. This study evaluates the financial performance of PT Telkom Indonesia (Persero) Tbk in the first half of 2026 compared with year-end 2025 and traces the sources of changes in return on equity (ROE) and the debt to equity ratio (DER). A descriptive-comparative quantitative design was applied to consolidated financial statements, using liquidity, activity, solvency, profitability, and market ratios, a sequential DuPont decomposition, and a decomposition of the change in DER. Consolidated ROE rose from 16.25% to 21.07%, of which 65.3% was attributable to a higher equity multiplier and 41.5% to net profit margin, while asset turnover contributed slightly negatively. DER increased from 0.91 to 1.25 times, mainly because of other payables that include dividends payable, whereas net interest-bearing debt fell by 35.3%. The increase in leverage is therefore largely accounting-driven rather than debt-financed. Future studies should extend the observation period and include peer companies.]]>
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