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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

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Deeann
10 months ago
I thought B Ltd had a better interest coverage ratio, is that wrong?
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Shawn
11 months ago
D Ltd's margins are definitely better than B Ltd's.
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Claudio
11 months ago
Wait, C Ltd has the worst debt to EBITDA? That seems off.
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Lisbeth
11 months ago
Totally agree, B Ltd looks stronger than C Ltd!
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Jacinta
11 months ago
A Ltd has the highest EBITDA margins, right?
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Melinda
11 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.
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Hoa
11 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.
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Theodora
11 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.
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Cassie
11 months ago
I remember studying EBITDA margins, but I’m not entirely sure how to compare them across these companies.
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Elouise
12 months ago
Hmm, I'm a bit confused on this one. I'll have to think it through more carefully.
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Dortha
12 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.
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Ceola
12 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.
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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.
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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.
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Darnell
1 year ago
C Ltd does have a pretty bad total debt to EBITDA ratio.
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Gilma
1 year ago
Yeah, D Ltd actually has higher EBITDA margins compared to B Ltd.
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Reed
1 year ago
I agree, B Ltd's interest coverage ratio is definitely the worst.
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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.
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Marti
1 year ago
User3: So, we can eliminate option C then.
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Gregoria
1 year ago
User2: Yeah, I agree. That statement must be incorrect.
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Shaniqua
1 year ago
User1: I think C Ltd has the worst total debt to EBITDA ratio.
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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.
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Ressie
1 year ago
I disagree, I believe the incorrect statement is D) B Ltd has worst interest coverage ratio.
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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.
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Alba
1 year ago
User4: I believe B Ltd has the worst interest coverage ratio.
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Julian
1 year ago
User3: C Ltd has the worst total debt to EBITDA ratio.
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Stevie
1 year ago
User2: I disagree, D Ltd actually has higher EBITDA margins than B Ltd.
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Tu
1 year ago
User1: I think B Ltd has higher EBITDA margins than C Ltd.
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Kenda
1 year ago
I think the incorrect statement is C) C Ltd has worst total debt to EBITDA ratio.
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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.
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