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

Limited Time Offer

25%

Off

Get Premium CCRA-L2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Hermila

1 months ago

I'm just here for the free coffee and biscuits. Oh, the question? Uh, I'll go with C. Sounds the most 'incorrect' to me.

upvoted 0 times

...

Dortha

2 months ago

Easy peasy lemon squeezy! The answer is clearly D. B Ltd's interest coverage ratio is abysmal, so that's the incorrect statement.

upvoted 0 times

Darnell

C Ltd does have a pretty bad total debt to EBITDA ratio.

upvoted 0 times

...

Gilma

2 days ago

Yeah, D Ltd actually has higher EBITDA margins compared to B Ltd.

upvoted 0 times

...

Reed

7 days ago

I agree, B Ltd's interest coverage ratio is definitely the worst.

upvoted 0 times

...

Kerry

2 months ago

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.

upvoted 0 times

Marti

11 days ago

User3: So, we can eliminate option C then.

upvoted 0 times

...

Gregoria

25 days ago

User2: Yeah, I agree. That statement must be incorrect.

upvoted 0 times

...

Shaniqua

1 months ago

User1: I think C Ltd has the worst total debt to EBITDA ratio.

upvoted 0 times

...

Onita

2 months ago

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

upvoted 0 times

...

Ressie

2 months ago

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

upvoted 0 times

...

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.

upvoted 0 times

Alba

25 days ago

User4: I believe B Ltd has the worst interest coverage ratio.

upvoted 0 times

...

Julian

1 months ago

User3: C Ltd has the worst total debt to EBITDA ratio.

upvoted 0 times

...

Stevie

1 months ago

User2: I disagree, D Ltd actually has higher EBITDA margins than B Ltd.

upvoted 0 times

...

Tu

2 months ago

User1: I think B Ltd has higher EBITDA margins than C Ltd.

upvoted 0 times

...

Kenda

2 months ago

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

upvoted 0 times

...

Stephen

2 months 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.

upvoted 0 times

...

AIWMI Exam CCRA-L2 Topic 4 Question 66 Discussion

Contribute your Thoughts:

Hermila

Dortha

Darnell

Gilma

Reed

Kerry

Marti

Gregoria

Shaniqua

Onita

Ressie

Scarlet

Alba

Julian

Stevie

Tu

Kenda

Stephen