The argument over the impact of financing decisions on profitability remains unresolved, owing mostly to the country and industry specific nature of the impact in the literature. i.e., the impact of capital structure on profitability differs from one economy to the next, depending on country level characteristics of each country (Velnampy & Niresh, 2012). The research adds to the literature by examining how capital structure (i.e., financing decisions) affects the profitability of non-financial firms listed on the Malawi stock exchange. The model is based on Abor (2005), who divides capital structure into total debt, short-term debt, and long-term debt. The static and dynamic panels for non-financial firms listed on the MSE were evaluated using data from 2008 to 2019. Capital structure has no effect on profitability as measured by ROE, however total debt and short-term debt have a negative relationship with profitability as measured by ROA. The negative relationship can be explained by relatively high interest rates, which increase borrowing costs. The expense of bankruptcy rises with the rise in interest rates. Managers will need to explore alternate sources of finance; given the high profit return of non-financial firms listed on the MSE, the report has suggested using reserves.