Impact of Financial Management Strategies on the Profitability of Commercial Companies in the City of Lichinga

This study analyzed the impact of financial management strategies on the profitability of commercial enterprises in the city of Lichinga, Niassa Province, Mozambique. This article aims to analyze the impact of financial management strategies on the profitability of commercial enterprises in the city of Lichinga using a mixed-methods approach. Data from selected companies were collected through questionnaires and interviews. The theoretical framework highlights some concepts of financial management, common strategies, and profitability indicators. The results reveal a significant and positive correlation between financial practices and company profitability, suggesting that companies that plan adequately , rigorously control costs, and efficiently manage credit exhibit higher levels of economic performance. Statistical analyses, including correlations and regressions, demonstrate that financial practices significantly explain the variation in profitability. The study concludes that strengthening financial management is a determining factor for the sustainability and growth of commercial enterprises in the city of Lichinga, recommending training actions for managers, the adoption of control tools, and improvements to internal management systems aimed at strengthening local management capacity.