Restaurants’ Solvency in Portugal during COVID-19

The main purpose of this study is to understand how Portuguese restaurants’ solvency was affected by the COVID-19 pandemic, considering factors that influence it. Financial information collected for years 2019 and 2020 in SABI database elaborate a quantitative methodology; descriptive analysis used Pearson’s correlation coefficient, Paired t-test, one-way ANOVA test, multiple linear regression were test formulated hypotheses. findings confirm several determinants, such as financial autonomy, indebtedness, leverage, asset turnover, return on equity, long-term bank debt. Solvency influenced positively autonomy leverage. In contrast, negatively Additionally, paper represents first study, restaurant sector Portugal, which analyses importance its facing normal year with crisis year. innovative terms knowledge about behavior periods also because pandemic has added an additional variable solvency: short-term theoretical implications, provides further insights influencing businesses during crisis. practical contributions are linked improving leadership skills owners managers deal general, thus their decreasing risks associated bankruptcy.