AIWMI Exam CCRA-L2 Topic 4 Question 66 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 66
Topic #: 4

[All CCRA-L2 Questions]

Scott is a credit analyst with one of the credit rating agencies in Indi

a. He was looking in Oil and Gas Industry companies and has presented brief financials for following 4 entities:

Which of the following statements is incorrect?

AB Ltd has higher EBITDA margins as compared to C Ltd.

BD Ltd has higher EBITDA margins as competed to B Ltd.

CC Ltd has worst total debt to EBITDA ratio.

DB Ltd has worst interest coverage ratio.

Show Suggested Answer

Suggested Answer: D

by Tawna at Feb 27, 2023, 12:07 AM

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Kerry

Hmm, this is a tough one. I'd have to go with C. C Ltd's total debt to EBITDA ratio looks the worst, so that statement can't be correct.

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Onita

10 days ago

I agree with Kenda, C Ltd having the worst total debt to EBITDA ratio seems incorrect based on the financials provided.

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Ressie

15 days ago

I disagree, I believe the incorrect statement is D) B Ltd has worst interest coverage ratio.

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This is a tricky one! I'm leaning towards A as the incorrect statement. The EBITDA margins for B Ltd and C Ltd seem to be close, so it might not be accurate to say that B Ltd has 'higher' EBITDA margins.

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Kenda

16 days ago

I think the incorrect statement is C) C Ltd has worst total debt to EBITDA ratio.

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Stephen

17 days ago

I think the correct answer is D. B Ltd has the worst interest coverage ratio, which is a crucial metric for credit analysis. The question is asking for the incorrect statement, and D seems to be the only one that matches that criteria.

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AIWMI Exam CCRA-L2 Topic 4 Question 66 Discussion

Contribute your Thoughts:

Kerry

Onita

Ressie

Scarlet

Kenda

Stephen