Abstract:
The main aim of this research was to addresses how financial management techniques
influence the profitability at Kifiya Financial Technology PLC. Financial mismanagement is
a cause of company failure, financial distress, and misallocation, so this study sought to
assess the influence of specific practices on the company's Return on Assets (ROA). The
researchers made use of both descriptive and explanatory designs in their research to collect
data from both primary and secondary sources. The sample, which was made up of
individuals who have a business studies background, ensured some familiarity with financial
management concepts. With descriptive and inferential statistics, quantitative data analysis
was and is also used to explore relationships between variables. Using correlation analysis
at the end of the analysis of the data relative to the above, the results showed that
profitability as measured by ROA correlated positively with Financial Literacy Practices (p
= .682), Resource Allocation (p = .391), Working Capital Management Practices (p = .728),
and Financial Management Practices (p = .503). These variables explained altogether 89.8
percent of the variance in profitability. Further regression analysis has shown that the
Financial Literacy Practices have a strong positive effect on the Return on Assets with a beta
coefficient of 0.500: Resource Allocation, beta = 0.640; Working Capital Management
Practices, beta = 0.660; and Financial Management Practices, beta = 0.280. These
outcomes show that sound financial management practices are crucial in increasing the
profitability of the firm. It can be seen that proper resource allocation and the management
of working capital have a great deal of positive correlation with financial performance. The
study recommends for Kifiya Financial Technology PLC to develop an all-inclusive annual
budget plan and improve on its accounting information management systems. Keeping the
financial literacy and accounting practices updated, improved continuously and regularly
would in a great way help in ensuring effective control over financial activities resulting in
improved profitability.
