Profitability Trends and Liquidity Management Implications at BRALIRWA Plc, Rwanda: A Seven-Year Analysis, 2018–2024

This paper examines the reported profitability trends of BRALIRWA Plc in Rwanda between 2018 and 2024, focusing on return on equity (ROE), return on assets (ROA), and net profit margin (NPM). A descriptive longitudinal case-study design is used to identify changes in the three indicators over seven annual observations. The reported figures show that ROE declined from 18.5% in 2018 to 3.4% in 2019 before increasing to 52.4% in 2024. ROA decreased from 5.4% to 1.0% over the same initial period and subsequently rose to 17.6%, while NPM declined from 7.3% to 1.2% before reaching 17.2% in 2024. The common decline in 2019, followed by a broad recovery, is the principal pattern in the reported series. The paper discusses the implications of these trends for cash-flow forecasting, receivables management, inventory control, and integrated working-capital management. However, the analysis does not establish that liquidity-management practices caused the observed profitability changes. Furthermore, the profitability figures have not been independently recalculated from BRALIRWA’s audited financial statements and should be treated as provisional pending verification. The paper recommends reconciling the figures with audited financial reports and incorporating company-specific liquidity indicators into future research.