AIWMI Exam CCRA-L2 Topic 9 Question 103 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 103
Topic #: 9

[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 four entities has best interest coverage ratios?

AC Ltd

BD Ltd

CA Ltd

DB Ltd

Show Suggested Answer

Suggested Answer: C

by Corinne at Nov 17, 2024, 04:39 AM

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Alyce

2 months ago

C Ltd for the win! Their interest coverage is off the charts compared to the others. Though I have to say, the negative ratio for B Ltd is truly impressive - they've managed to defy the laws of finance!

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Delpha

19 days ago

C Ltd seems like a solid choice based on their financial performance.

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Mignon

1 months ago

It's surprising to see B Ltd with a negative ratio, they must be really struggling financially.

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Samira

1 months ago

I agree, C Ltd definitely has the best interest coverage ratios among the four entities.

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Melvin

2 months ago

Hmm, D Ltd has a pretty decent 5.4 coverage ratio, but C Ltd's 8.0 is just too good to ignore. I guess D Ltd is the silver medalist in this competition.

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Annita

9 days ago

Definitely, C Ltd seems to be the winner in this scenario.

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Josefa

12 days ago

I think A Ltd and B Ltd are not even in the running with their lower ratios.

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Merilyn

23 days ago

Yes, D Ltd's 5.4 is good, but C Ltd definitely takes the lead.

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Izetta

1 months ago

I agree, C Ltd's interest coverage ratio of 8.0 is impressive.

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Aron

2 months ago

I think A Ltd has the best interest coverage ratios because their financials look more stable.

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Floyd

2 months ago

The interest coverage ratio for C Ltd is clearly the highest, so it's the obvious answer. Though I do have to wonder, what kind of crazy business is B Ltd running to have a negative coverage ratio?

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Vicente

1 months ago

I know, it's surprising that B Ltd has a negative coverage ratio. They must be in trouble.

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Adolph

1 months ago

C Ltd has the best interest coverage ratio.

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Domingo

2 months ago

I disagree, I believe C Ltd has the best interest coverage ratios.

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Inocencia

2 months ago

Based on the interest coverage ratios shown, C Ltd has the highest ratio at 8.0, which indicates it has the best ability to cover its interest payments. This makes C Ltd the best choice.

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