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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Melvin

3 days 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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Aron

10 days ago

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

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Floyd

12 days 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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Domingo

17 days ago

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

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Inocencia

18 days 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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Marica

20 days ago

I think D Ltd has the best interest coverage ratios.

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