Solvency Management and Financial Sustainability of Supermarkets in Kenya
Authors/Creators
- 1. Lecturer, School of Business and Economics, Laikipia University
- 2. Part-time Lecturer, School of Business, Jomo Kenyatta University of Agriculture and Technology
Description
Supermarkets are vital drivers of the Kenyan Economy. However, lack of effective solvency management and cash flow challenges have deterred financial sustainability among supermarkets and left them on the brink of collapse. This paper investigated the influence of solvency management on the financial sustainability of supermarkets in Kenya. The study specifically examined the effect of financial leverage, operating margins, and firm size on supermarkets’ financial sustainability. The cash flow theory guided the study. The paper was a conceptual review and adopted a descriptive research design. It applied data from the empirical findings of studies related to solvency management and financial sustainability. Results revealed a significant relationship between solvency management and financial sustainability. It indicated that constructs of solvency management comprising financial leverage, operating margins, and firm size influence supermarkets’ financial sustainability in Kenya.
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Additional details
References
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