Interest Coverage Ratio (ICR) measures a company’s ability to pay interest on its outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses. A higher ratio indicates a better ability to meet interest obligations, while a lower ratio may signal potential financial trouble.In the context of cryptocurrency projects, many startups may take on debt to fund operations or growth. Assessing the ICR can offer insights into the project’s financial health, helping investors gauge the risk involved. For investors, an attractive ICR can signal that a project is stable enough to handle its debt, potentially making it a safer investment option. Conversely, a low ICR might raise red flags about a project’s sustainability or ability to generate profit.While traditional financial metrics like ICR are commonly used in evaluating companies, the growing presence of financing and lending in the cryptocurrency space makes this ratio increasingly relevant for assessing financial stability.