| Abstract: | Improper financial management practices have proven to be a main cause of failures in companies in terms of financial difficulty, mismanagement of fund and shortage of long-term funds to meet the operating cost and capital expenditure. Accordingly, the purpose of this study is to assess the effect of financial management practice on profitability of Kifiya Financial Technology PLC. The study employed an explanatory and descriptive research design in which data was collected through primary and secondary data. Quantitative data analysis was employed. Among all employees of the company, employees with educational background of business studies were selected for response since they have an exposure for financial management. Data was analyzed descriptively and inferentially. From the correlation analysis the study revealed that financial literacy practice (r=.636), Resource allocation (r=0.439), Working capital management practice (r=.660) and financial management practice (r=.430) has a positive correlation with a dependent variable of profitability which is measured by ROA of kifiya financial technology plc. 89.8% of the variance in the dependent variable can be predicted by the independent variables. From the coefficient table, it is seen that the positive and significance relationship found at independent variables of financial literacy practice (β = .471, p= .000), resource allocation (β = .669, p= .000), working capital management practice (β = .648, p= .000) and financial management practice (β = .275, p= .000). The researcher believes that the study could contribute a lot for kifiya financial technology plc related to the implementation of financial management practices on company profitability. Improvement and interrelation in all independent variables can increase the profitability of kifiya financial technology plc and also increasing integration of financial management practices efficiency and to overcome and keep the company distinctive profitability. As indicated in the research finding there is a strong correlation between financial management practices and profitability, Kifiya financial technology plc owners and managers should pay much attention to these practices. |
