AIWMI CCRA-L2 Exam - Topic 9 Question 123 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 123
Topic #: 9

Ms. Mary Brown is a credit rating analyst. She had prepared a detailed report on one of her client, FlyHigh

Airlines Ltd, a company operating chartered aircrafts in Indi

a. As she was heading for a meeting with her superior on the matter, coffee spilled over her set of prepared paper(s). As she was getting late for meeting, instead of preparing entire set she could recollect few numbers from her memory and reconstructed following partial financial table:

An analyst comparing two competitors Comp Systems and Big Tables gathers the data below:

Cash Conversions Cycle:

Comp Systems: 18 days and Big Tables 32 days

Defense Interval Ratio:

Comp Systems: 50 and Big Tables: 20

What can the analyst conclude regarding the liquidity of these companies?

ABoth indicators suggest that Comp Systems is more liquid than Big Tables

BBoth indicators suggest that Big Tables manages it/s cash better than Comp Systems

CBoth indicators give contradictory results

DWhile Comp Systems is more liquid as per the Cash conversion cycle, Big Tables manages its cash better as indicated by a lower, hence better Defense Ratio

Show Suggested Answer

Suggested Answer: C

by Cherry at Apr 01, 2026, 11:56 AM

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