Telefonaktiebolaget LM Ericsson (ERCA) Ratios
Telefonaktiebolaget LM Ericsson Ratios
DE:ERCA's free cash flow for Q3 2026 was $5.33B. For the 2026 fiscal year, DE:ERCA's free cash flow was decreased by $-1.14B and operating cash flow was $6.47B. See a summary of the company’s cash flow.
| Ratios | Dec 25 | Dec 24 | Dec 23 | Dec 22 | Dec 21 |
|---|---|---|---|---|---|
| Liquidity Ratios | |||||
| Current Ratio | 1.29 | 1.17 | 1.20 | 1.19 | 1.38 |
| Quick Ratio | 1.08 | 0.96 | 0.92 | 0.88 | 1.10 |
| Cash Ratio | 0.40 | 0.33 | 0.27 | 0.26 | 0.43 |
| Solvency Ratio | 0.20 | 0.05 | -0.07 | 0.13 | 0.16 |
| Operating Cash Flow Ratio | 0.28 | 0.37 | 0.05 | 0.22 | 0.32 |
| Short-Term Operating Cash Flow Coverage | 5.81 | 5.85 | 0.34 | 3.75 | 3.49 |
| Net Current Asset Value | $ -25.41B | $ -50.42B | $ -57.70B | $ -46.80B | $ -25.58B |
| Leverage Ratios | |||||
| Debt-to-Assets Ratio | 0.16 | 0.15 | 0.18 | 0.12 | 0.13 |
| Debt-to-Equity Ratio | 0.42 | 0.48 | 0.55 | 0.31 | 0.38 |
| Debt-to-Capital Ratio | 0.30 | 0.33 | 0.36 | 0.24 | 0.27 |
| Long-Term Debt-to-Capital Ratio | 0.24 | 0.25 | 0.23 | 0.17 | 0.17 |
| Financial Leverage Ratio | 2.55 | 3.16 | 3.14 | 2.63 | 2.83 |
| Debt Service Coverage Ratio | 4.49 | 1.24 | -0.52 | 2.91 | 2.48 |
| Interest Coverage Ratio | 10.73 | 2.53 | 5.17 | 15.74 | 18.74 |
| Debt to Market Cap | 0.14 | 0.14 | 0.23 | 0.17 | 0.10 |
| Interest Debt Per Share | 14.67 | 14.79 | 17.29 | 13.03 | 12.88 |
| Net Debt to EBITDA | 0.05 | 0.10 | -2.02 | 0.11 | -0.32 |
| Profitability Margins | |||||
| Gross Profit Margin | 48.14% | 44.95% | 39.64% | 41.79% | 43.49% |
| EBIT Margin | 17.45% | 2.57% | -7.59% | 9.77% | 13.45% |
| EBITDA Margin | 20.60% | 6.61% | -3.78% | 12.92% | 16.51% |
| Operating Profit Margin | 13.82% | 3.61% | 6.81% | 11.29% | 14.04% |
| Pretax Profit Margin | 16.18% | 1.04% | -8.85% | 9.06% | 12.59% |
| Net Profit Margin | 12.01% | 0.01% | -10.04% | 6.90% | 9.77% |
| Continuous Operations Profit Margin | 12.13% | 0.15% | -9.91% | 7.04% | 9.89% |
| Net Income Per EBT | 74.22% | 0.77% | 113.41% | 76.09% | 77.59% |
| EBT Per EBIT | 117.11% | 28.96% | -130.01% | 80.25% | 89.65% |
| Return on Assets (ROA) | 9.57% | 0.01% | -8.09% | 5.43% | 7.78% |
| Return on Equity (ROE) | 24.40% | 0.02% | -25.44% | 14.30% | 22.00% |
| Return on Capital Employed (ROCE) | 18.27% | 5.64% | 9.42% | 15.09% | 19.05% |
| Return on Invested Capital (ROIC) | 13.28% | 0.78% | 8.49% | 11.27% | 14.05% |
| Return on Tangible Assets | 11.99% | 0.01% | -10.92% | 8.03% | 9.14% |
| Earnings Yield | 9.01% | 0.01% | -11.87% | 9.34% | 7.30% |
| Efficiency Ratios | |||||
| Receivables Turnover | 3.51 | 3.81 | 3.50 | 3.59 | 3.50 |
| Payables Turnover | 4.38 | 4.73 | 5.43 | 4.23 | 3.88 |
| Inventory Turnover | 4.92 | 5.25 | 4.17 | 3.51 | 3.89 |
| Fixed Asset Turnover | 14.33 | 15.21 | 13.50 | 12.65 | 11.38 |
| Asset Turnover | 0.80 | 0.87 | 0.81 | 0.79 | 0.80 |
| Working Capital Turnover Ratio | 8.08 | 10.80 | 9.39 | 7.27 | 5.88 |
| Cash Conversion Cycle | 94.99 | 88.19 | 124.73 | 119.37 | 103.95 |
| Days of Sales Outstanding | 104.12 | 95.87 | 104.33 | 101.69 | 104.20 |
| Days of Inventory Outstanding | 74.19 | 69.54 | 87.57 | 103.89 | 93.82 |
| Days of Payables Outstanding | 83.32 | 77.22 | 67.17 | 86.21 | 94.06 |
| Operating Cycle | 178.31 | 165.41 | 191.90 | 205.58 | 198.01 |
| Cash Flow Ratios | |||||
| Operating Cash Flow Per Share | 9.29 | 14.52 | 2.04 | 9.36 | 12.35 |
| Free Cash Flow Per Share | 8.55 | 13.79 | 1.11 | 8.00 | 11.19 |
| Dividend Paid and CapEx Coverage Ratio | 2.71 | 4.08 | 0.58 | 2.41 | 3.70 |
| Capital Expenditure Coverage Ratio | 12.53 | 19.77 | 2.18 | 6.89 | 10.66 |
| Operating Cash Flow Coverage Ratio | 0.67 | 1.06 | 0.13 | 0.75 | 1.00 |
| Operating Cash Flow to Sales Ratio | 0.14 | 0.19 | 0.03 | 0.11 | 0.17 |
| Free Cash Flow Yield | 9.61% | 15.46% | 1.74% | 13.17% | 11.39% |
| Valuation Ratios | |||||
| Price-to-Earnings (P/E) Ratio | 11.11 | 14860.76 | -8.42 | 10.70 | 13.69 |
| Price-to-Sales (P/S) Ratio | 1.33 | 1.15 | 0.85 | 0.74 | 1.34 |
| Price-to-Book (P/B) Ratio | 2.71 | 3.15 | 2.14 | 1.53 | 3.01 |
| Price-to-Free Cash Flow (P/FCF) Ratio | 10.41 | 6.47 | 57.41 | 7.59 | 8.78 |
| Price-to-Operating Cash Flow Ratio | 9.58 | 6.14 | 31.03 | 6.49 | 7.95 |
| Price-to-Earnings Growth (PEG) Ratio | 0.00 | -148.49 | 0.04 | -0.51 | 0.26 |
| Enterprise Value Multiple | 6.52 | 17.42 | -24.40 | 5.82 | 7.78 |
| Enterprise Value | 298.71B | 298.84B | 230.39B | 206.20B | 314.17B |
| EV to EBITDA | 6.52 | 17.42 | -24.40 | 5.82 | 7.78 |
| EV to Sales | 1.34 | 1.15 | 0.92 | 0.75 | 1.28 |
| EV to Free Cash Flow | 10.48 | 6.50 | 62.60 | 7.74 | 8.43 |
| EV to Operating Cash Flow | 9.64 | 6.17 | 33.84 | 6.61 | 7.64 |
| Tangible Book Value Per Share | 16.16 | 7.32 | 5.14 | 5.51 | 18.45 |
| Shareholders’ Equity Per Share | 32.85 | 28.32 | 29.61 | 39.71 | 32.61 |
| Tax and Other Ratios | |||||
| Effective Tax Rate | 0.25 | 0.86 | -0.12 | 0.22 | 0.21 |
| Revenue Per Share | 66.73 | 77.82 | 75.01 | 82.36 | 73.46 |
| Net Income Per Share | 8.02 | 0.01 | -7.53 | 5.68 | 7.18 |
| Tax Burden | 0.74 | 0.01 | 1.13 | 0.76 | 0.78 |
| Interest Burden | 0.93 | 0.41 | 1.17 | 0.93 | 0.94 |
| Research & Development to Revenue | 0.20 | 0.21 | 0.18 | 0.17 | 0.18 |
| SG&A to Revenue | 0.14 | 0.21 | 0.00 | 0.00 | 0.00 |
| Stock-Based Compensation to Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Income Quality | 1.16 | 2313.01 | -0.27 | 1.65 | 1.72 |
Currency in SEK