“The Impact of Financial Management on The Company Profitability of Kifiya Financial Technology Plc.”

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.