Telefonaktiebolaget LM Ericsson (publ) (ERIC) Key Metrics
ERIC key metrics, 2016–2025
Fiscal year ended December 31, 2025 · Swedish kronorERIC returns How much profit the business earns on the capital it uses.
ERIC financial health Debt, liquidity and how easily interest is covered.
ERIC efficiency & capital use Working capital cycle and where the cash goes.
ERIC returns on capital
Net income (ROE, ROA) or after-tax operating income (ROIC) divided by the average of the opening and closing balance.
ERIC debt vs cash
Debt includes short- and long-term borrowings and, where reported, lease liabilities.
ERIC cash returned to shareholders
ERIC key metrics in Swedish kronor
2016–2025| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Returns & profitability | ||||||||||
| Return on equity (ROE) | 26.2% | 0.0% | −21.7% | 15.7% | 24.5% | 18.7% | 2.5% | −7.2% | −26.6% | 1.3% |
| Return on invested capital (ROIC) | 25.3% | 4.9% | 11.4% | 22.9% | 34.1% | 22.5% | 13.8% | 10.2% | −10.6% | 6.5% |
| Return on assets (ROA) | 9.3% | 0.0% | −7.6% | 5.8% | 8.2% | 5.7% | 0.8% | −2.5% | −11.4% | 0.6% |
| Return on tangible assets | 12.0% | 0.0% | −10.9% | 8.0% | 9.1% | 6.8% | 0.9% | −2.8% | −13.6% | 0.8% |
| Free cash flow margin | 12.8% | 17.7% | 1.5% | 9.0% | 14.1% | 11.4% | 4.7% | 2.5% | 2.8% | 3.5% |
| Income quality (OCF / net income) | 1.16 | — | — | 1.63 | 1.64 | 1.86 | 7.91 | — | — | 8.16 |
| Financial health | ||||||||||
| Total debt | SEK 46.04B | SEK 45.59B | SEK 54.28B | SEK 41.43B | SEK 41.05B | SEK 39.39B | SEK 46.16B | SEK 33.62B | SEK 33.77B | SEK 26.83B |
| Cash & short-term investments | SEK 56.64B | SEK 56.50B | SEK 44.74B | SEK 46.19B | SEK 66.85B | SEK 50.34B | SEK 50.29B | SEK 45.68B | SEK 43.53B | SEK 50.56B |
| Net debt | −SEK 10.61B | −SEK 10.91B | SEK 9.55B | −SEK 4.76B | −SEK 25.80B | −SEK 10.95B | −SEK 4.13B | −SEK 12.07B | −SEK 9.76B | −SEK 23.73B |
| Debt / equity | 0.42 | 0.48 | 0.55 | 0.31 | 0.38 | 0.46 | 0.58 | 0.38 | 0.34 | 0.19 |
| Debt / assets | 0.16 | 0.15 | 0.18 | 0.12 | 0.13 | 0.14 | 0.17 | 0.12 | 0.12 | 0.09 |
| Net debt / EBITDA | −0.23 | −0.64 | — | −0.13 | −0.64 | −0.33 | −0.21 | −2.27 | — | −1.59 |
| Current ratio | 1.29 | 1.17 | 1.20 | 1.19 | 1.38 | 1.31 | 1.32 | 1.45 | 1.54 | 1.85 |
| Quick ratio | 1.08 | 0.96 | 0.92 | 0.88 | 1.10 | 1.06 | 1.05 | 1.19 | 1.28 | 1.52 |
| Interest coverage | 10.7 | 2.5 | 5.2 | 15.7 | 18.7 | 13.3 | 9.2 | 5.2 | -9.7 | 8.2 |
| Working capital | SEK 32.62B | SEK 22.46B | SEK 25.57B | SEK 27.65B | SEK 47.76B | SEK 35.41B | SEK 35.99B | SEK 51.00B | SEK 55.07B | SEK 81.45B |
| Invested capital | SEK 98.93B | SEK 83.49B | SEK 108.14B | SEK 127.49B | SEK 82.77B | SEK 75.57B | SEK 75.96B | SEK 76.21B | SEK 89.29B | SEK 116.84B |
| Tangible asset value | SEK 53.89B | SEK 24.39B | SEK 17.10B | SEK 18.33B | SEK 61.42B | SEK 41.50B | SEK 42.83B | SEK 50.77B | SEK 62.35B | SEK 81.72B |
| Net current asset value | −SEK 25.41B | −SEK 50.42B | −SEK 57.70B | −SEK 46.80B | −SEK 25.58B | −SEK 38.50B | −SEK 41.82B | −SEK 23.38B | −SEK 15.89B | SEK 29.57B |
| Capital allocation | ||||||||||
| Dividends paid | SEK 8.97B | SEK 9.41B | SEK 8.53B | SEK 8.41B | SEK 6.89B | SEK 6.00B | SEK 4.45B | SEK 3.54B | SEK 3.35B | SEK 12.86B |
| Share buybacks (net) | — | — | — | — | SEK 0 | SEK 163.0M | SEK 0 | SEK 0 | SEK 15.0M | SEK 26.0M |
| Dividend payout ratio | 33.6% | — | — | 44.5% | 28.8% | 38.5% | 208.5% | — | — | 702.7% |
| Dividends + buybacks / free cash flow | 31.5% | 20.5% | 231.7% | 34.1% | 20.0% | 26.1% | 43.6% | 63.8% | 60.1% | 153.3% |
| Capex / revenue | 1.1% | 0.9% | 1.3% | 2.3% | 1.9% | 2.6% | 3.1% | 1.9% | 1.9% | 2.8% |
| Capex / operating cash flow | 8.0% | 5.1% | 45.9% | 20.1% | 11.8% | 18.4% | 39.5% | 42.5% | 40.4% | 43.7% |
| Capex / depreciation | 0.35 | 0.23 | 0.33 | 0.59 | 0.52 | 0.61 | 0.73 | 0.86 | 0.46 | 0.74 |
| Stock-based compensation / revenue | — | — | 0.5% | 0.2% | −1.9% | 0.2% | 0.2% | 0.6% | 0.5% | 0.4% |
| R&D / revenue | 20.4% | 20.7% | 18.3% | 17.4% | 18.1% | 16.9% | 16.9% | 17.8% | 16.0% | 12.2% |
| SG&A / revenue | 15.1% | 19.9% | 15.7% | 13.0% | 11.0% | 12.9% | 12.0% | 12.6% | 16.2% | 12.2% |
| Efficiency | ||||||||||
| Days sales outstanding | 107.9 | 98.2 | 108.0 | 97.3 | 103.5 | 120.4 | 128.7 | 142.8 | 158.2 | 137.5 |
| Days of inventory on hand | 80.1 | 81.0 | 98.8 | 92.6 | 84.6 | 86.8 | 79.8 | 72.1 | 69.7 | 67.2 |
| Days payables outstanding | 89.4 | 74.1 | 79.2 | 83.8 | 89.2 | 91.2 | 80.0 | 73.9 | 63.0 | 52.9 |
| Cash conversion cycle (days) | 98.6 | 105.1 | 127.6 | 106.0 | 98.8 | 116.0 | 128.4 | 141.0 | 164.9 | 151.9 |
| Receivables turnover | 3.38 | 3.72 | 3.38 | 3.75 | 3.53 | 3.03 | 2.84 | 2.56 | 2.31 | 2.65 |
| Payables turnover | 4.08 | 4.93 | 4.61 | 4.35 | 4.09 | 4.00 | 4.56 | 4.94 | 5.80 | 6.90 |
| Inventory turnover | 4.56 | 4.51 | 3.69 | 3.94 | 4.32 | 4.20 | 4.57 | 5.06 | 5.23 | 5.43 |
| Asset turnover | 0.77 | 0.85 | 0.76 | 0.84 | 0.84 | 0.76 | 0.80 | 0.80 | 0.72 | 0.83 |
| Average receivables | SEK 65.80B | SEK 69.76B | SEK 73.91B | SEK 73.11B | SEK 69.31B | SEK 68.26B | SEK 76.89B | SEK 85.30B | SEK 87.16B | SEK 89.48B |
| Average payables | SEK 28.27B | SEK 28.98B | SEK 32.73B | SEK 36.66B | SEK 33.77B | SEK 30.71B | SEK 29.91B | SEK 28.61B | SEK 26.18B | SEK 23.89B |
| Average inventory | SEK 25.33B | SEK 31.69B | SEK 40.81B | SEK 40.48B | SEK 32.02B | SEK 29.23B | SEK 29.82B | SEK 27.90B | SEK 28.98B | SEK 30.37B |
| Intangibles / total assets | 20.2% | 23.1% | 25.9% | 32.3% | 14.8% | 15.9% | 13.5% | 13.9% | 13.7% | 20.6% |
Computed from ERIC's annual financial statements (latest annual report filed March 12, 2026) and the closing share price on each fiscal year-end, adjusted for stock splits. Figures in Swedish kronor; data from EODHD. Averages use the opening and closing balance of each year.
ERIC valuation and financial ratios
Telefonaktiebolaget LM Ericsson earned a return on equity of 26.2% and a return on invested capital of 25.3% in fiscal 2025. It ended the year with SEK 46.0 billion of debt and SEK 56.6 billion in cash and short-term investments, a net cash position of SEK 10.6 billion. It returned SEK 9.0 billion to shareholders: SEK 9.0 billion in dividends and SEK 0 in share buybacks, 31% of free cash flow.
See the ERIC income statement, the ERIC chart for price history, or the ERIC stock overview for the latest quote and news.
ERIC key metrics FAQ
What is Telefonaktiebolaget LM Ericsson's return on equity?
Telefonaktiebolaget LM Ericsson's return on equity (ROE) was 26.2% in fiscal 2025: net income of SEK 26.7 billion on average shareholders' equity of SEK 102.0 billion.
What is Telefonaktiebolaget LM Ericsson's ROIC?
Telefonaktiebolaget LM Ericsson's return on invested capital was 25.3% in fiscal 2025, using after-tax operating income divided by average debt plus equity minus cash.
How much debt does Telefonaktiebolaget LM Ericsson have?
Telefonaktiebolaget LM Ericsson had total debt of SEK 46.0 billion at the end of fiscal 2025, a debt-to-equity ratio of 0.42 and more cash than debt.
What is Telefonaktiebolaget LM Ericsson's current ratio?
Telefonaktiebolaget LM Ericsson's current ratio was 1.29 at the end of fiscal 2025: current assets were 1.29 times current liabilities.