U.S. Independence Day Deal! Unlock 25% OFF Today – Limited-Time Offer - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AIWMI CCRA-L2 Exam - Topic 4 Question 66 Discussion

Scott is a credit analyst with one of the credit rating agencies in India. 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?
D) B Ltd has worst interest coverage ratio.
A) B Ltd has higher EBITDA margins as compared to C Ltd.
B) D Ltd has higher EBITDA margins as competed to B Ltd.
C) C Ltd has worst total debt to EBITDA ratio.

AIWMI CCRA-L2 Exam - 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?

Show Suggested Answer Hide 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:

0/2000 characters
Submit Cancel
Deeann
7 months ago
I thought B Ltd had a better interest coverage ratio, is that wrong?
upvoted 0 times
...
Shawn
8 months ago
D Ltd's margins are definitely better than B Ltd's.
upvoted 0 times
...
Claudio
8 months ago
Wait, C Ltd has the worst debt to EBITDA? That seems off.
upvoted 0 times
...
Lisbeth
8 months ago
Totally agree, B Ltd looks stronger than C Ltd!
upvoted 0 times
...
Jacinta
8 months ago
A Ltd has the highest EBITDA margins, right?
upvoted 0 times
...
Melinda
8 months ago
I’m a bit confused about the EBITDA comparisons. I thought B Ltd had better margins than C Ltd, but now I’m not so sure.
upvoted 0 times
...
Hoa
8 months ago
I think I recall that interest coverage ratios are crucial for assessing financial health. I’m leaning towards D Ltd having the worst coverage, but I could be mistaken.
upvoted 0 times
...
Theodora
8 months ago
This question feels similar to one we practiced where we had to analyze debt ratios. I think C Ltd might have the worst ratio, but I need to double-check.
upvoted 0 times
...
Cassie
8 months ago
I remember studying EBITDA margins, but I’m not entirely sure how to compare them across these companies.
upvoted 0 times
...
Elouise
9 months ago
Hmm, I'm a bit confused on this one. I'll have to think it through more carefully.
upvoted 0 times
...
Dortha
9 months ago
The question is pretty clear - the Business Partner MDG data model must be used. That means C is the correct answer. I'm feeling good about this one.
upvoted 0 times
...
Ceola
9 months ago
I'm a bit confused by the wording of the question. Is it asking for the equivalent milestone, or the exact same milestone? I'll need to double-check the documentation to be sure.
upvoted 0 times
...
Hermila
1 year 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
1 year 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
1 year ago
C Ltd does have a pretty bad total debt to EBITDA ratio.
upvoted 0 times
...
Gilma
1 year ago
Yeah, D Ltd actually has higher EBITDA margins compared to B Ltd.
upvoted 0 times
...
Reed
1 year ago
I agree, B Ltd's interest coverage ratio is definitely the worst.
upvoted 0 times
...
...
Kerry
1 year 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
1 year ago
User3: So, we can eliminate option C then.
upvoted 0 times
...
Gregoria
1 year ago
User2: Yeah, I agree. That statement must be incorrect.
upvoted 0 times
...
Shaniqua
1 year ago
User1: I think C Ltd has the worst total debt to EBITDA ratio.
upvoted 0 times
...
...
Onita
1 year 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
1 year ago
I disagree, I believe the incorrect statement is D) B Ltd has worst interest coverage ratio.
upvoted 0 times
...
Scarlet
1 year ago
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
1 year ago
User4: I believe B Ltd has the worst interest coverage ratio.
upvoted 0 times
...
Julian
1 year ago
User3: C Ltd has the worst total debt to EBITDA ratio.
upvoted 0 times
...
Stevie
1 year ago
User2: I disagree, D Ltd actually has higher EBITDA margins than B Ltd.
upvoted 0 times
...
Tu
1 year ago
User1: I think B Ltd has higher EBITDA margins than C Ltd.
upvoted 0 times
...
...
Kenda
1 year ago
I think the incorrect statement is C) C Ltd has worst total debt to EBITDA ratio.
upvoted 0 times
...
Stephen
1 year 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
...

Save Cancel