ICR (Interest Coverage Ratio)
- The Interest Coverage Ratio (ICR) is a financial metric used to assess a company's ability to cover its interest expense with its operating income.
- It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense.
- A higher ICR indicates that a company is more capable of meeting its interest obligations.

DSCR (Debt Service Coverage Ratio)
- The Debt Service Coverage Ratio (DSCR) is a financial ratio that measures a company's ability to meet its debt obligations.
- It is calculated by dividing a company's operating income by its total debt service (principal and interest payments).
- A DSCR of less than 1 indicates that a company is not generating enough income to cover its debt obligations, while a DSCR of 1 or higher shows that a company is able to meet its debt obligations.

Differences between ICR and DSCR
- ICR focuses solely on a company's ability to cover its interest expenses, while DSCR takes into account both principal and interest payments.
- ICR is calculated using EBIT, while DSCR is calculated using operating income.
- ICR provides a broader view of a company's financial health, while DSCR specifically assesses its ability to meet debt obligations.
- Both ratios are used by investors and lenders to evaluate a company's financial stability and creditworthiness.