Ericsson (ERIC) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 29, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 20-F for FY2025, filed Mar 12, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the ERIC SEC filings page.
Ericsson (ERIC) reported $25.7B in revenue for fiscal year 2025, up 14.6% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 11 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group, and the overall is the average of the dimensions that can be computed. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Ericsson's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Ericsson has an operating margin of 16.3%, meaning the company retains $16 of operating profit per $100 of revenue. This results in a moderate score of 47/100, indicating healthy but not exceptional operating efficiency. This is up from 1.7% the prior year.
Ericsson's revenue grew 14.6% year-over-year to $25.7B, a solid pace of expansion. This earns a growth score of 27/100.
Ericsson carries a low D/E ratio of 0.27, meaning only $0.27 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 92/100, indicating a strong balance sheet with room for future borrowing.
Ericsson's current ratio of 1.29 indicates adequate short-term liquidity, earning a score of 34/100. The company can meet its near-term obligations, though with limited headroom.
Ericsson converts 12.8% of revenue into free cash flow ($3.3B). This strong cash generation earns a score of 71/100.
Ericsson's ROE of 25.9% shows moderate profitability relative to equity, earning a score of 53/100. This is up from 0.0% the prior year.
Ericsson scores 2.95, placing it in the grey zone between 1.81 and 2.99. The largest contribution to the score comes from a market capitalization of $36.1B against total liabilities of $18.4B. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Ericsson passes 7 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), all 2 leverage/liquidity signals pass, 1 of 2 operating efficiency signals passes.
For every $1 of reported earnings, Ericsson generates $1.16 in operating cash flow ($3.6B OCF vs $3.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Ericsson earns $12.68 in operating income for every $1 of interest expense ($4.2B vs $330.4M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Ericsson generated $25.7B in revenue in fiscal year 2025. This represents an increase of 14.6% from the prior year.
Ericsson's EBITDA was $5.2B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 91.2% from the prior year.
Ericsson reported $3.1B in net income in fiscal year 2025. This represents an increase of 170473.5% from the prior year.
Cash & Balance Sheet
Ericsson generated $3.3B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 17.1% from the prior year.
Ericsson held $4.8B in cash against $3.2B in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Ericsson's gross margin was 47.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 3.5 percentage points from the prior year.
Ericsson's operating margin was 16.3% in fiscal year 2025, reflecting core business profitability. This is up 14.6 percentage points from the prior year.
Ericsson's net profit margin was 12.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 12.0 percentage points from the prior year.
Ericsson's ROE was 25.9% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 25.9 percentage points from the prior year.
Capital Allocation
Ericsson invested $5.3B in research and development in fiscal year 2025. This represents an increase of 9.5% from the prior year.
Ericsson invested $285.2M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 34.9% from the prior year.
Not reported for fiscal year 2025.
ERIC Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $25.7B+14.6% | $22.4B-14.5% | $26.2B+0.5% | $26.1B+1.5% | $25.7B-9.3% | $28.3B+16.4% | $24.3B+2.3% | $23.8B-5.4% | $25.1B+3.6% | $24.3B-17.0% | $29.2B |
| Cost of Revenue | $13.4B+7.4% | $12.5B-22.2% | $16.1B+5.9% | $15.2B+4.5% | $14.5B-13.9% | $16.9B+10.8% | $15.2B-5.3% | $16.1B-16.5% | $19.3B+12.8% | $17.1B-10.4% | $19.1B |
| Gross Profit | $12.2B+23.6% | $9.9B-2.3% | $10.1B-7.1% | $10.9B-2.3% | $11.1B-2.5% | $11.4B+25.7% | $9.1B+18.0% | $7.7B+31.2% | $5.9B-18.4% | $7.2B-29.3% | $10.2B |
| R&D Expenses | $5.3B+9.5% | $4.8B-4.1% | $5.0B+11.0% | $4.5B-2.3% | $4.6B-3.9% | $4.8B+16.4% | $4.2B-5.3% | $4.4B-5.3% | $4.6B+33.1% | $3.5B-15.5% | $4.1B |
| Operating Income | $4.2B+974.9% | $389.7Mn/m | -$2.0B-178.0% | $2.6B-26.1% | $3.5B+3.7% | $3.4B+199.6% | $1.1B+707.1% | $140.1Mn/m | -$4.3B-844.1% | $571.2M-77.9% | $2.6B |
| EBITDA | $5.2B+91.2% | $2.7B+15.8% | $2.3B-35.0% | $3.6B-19.9% | $4.5B+1.3% | $4.4B+111.2% | $2.1B+95.1% | $1.1Bn/m | -$838.2M-153.2% | $1.6B-58.4% | $3.8B |
| Interest Expense | $330.4M-10.9% | $370.7M-9.5% | $409.7M+121.1% | $185.3M+0.2% | $185.0M-28.2% | $257.8M-10.9% | $289.2M+26.2% | $229.2M+19.3% | $192.1M-19.2% | $237.7M-18.3% | $290.9M |
| Income Tax | $1.0B+419.5% | $200.1M-27.8% | $277.1M-47.5% | $527.7M-23.8% | $692.8M-40.7% | $1.2B+57.6% | $740.9M+36.5% | $542.9Mn/m | -$431.3M-308.1% | $207.3M-71.8% | $733.7M |
| Net Income | $3.1B+170473.5% | $1.8Mn/m | -$2.6B-246.4% | $1.8B-28.3% | $2.5B+17.8% | $2.1B+795.0% | $237.9Mn/m | -$736.6Mn/m | -$4.0B-4444.7% | $91.7M-94.3% | $1.6B |
| EPS (Basic) | $0.92 | $0.00 | -$0.79-246.4% | $0.54-28.4% | $0.75+17.6% | $0.64+793.6% | $0.07n/m | -$0.22n/m | -$1.22-4352.4% | $0.03-94.2% | $0.49 |
| EPS (Diluted) | $0.92 | $0.00 | -$0.79-246.4% | $0.54-28.3% | $0.75+17.4% | $0.64+793.6% | $0.07n/m | -$0.22n/m | -$1.22-4522.5% | $0.03-94.4% | $0.49 |
| Diluted Shares (Avg) | 3.34B | 3.34B | 3.33B-0.1% | 3.33B+0.1% | 3.33B+0.2% | 3.33B+0.2% | 3.32B+0.9% | 3.29B+0.4% | 3.28B-0.8% | 3.30B+0.6% | 3.28B |
Not reported in any period shown, so not listed: SG&A Expenses.
ERIC Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $30.3B+14.6% | $26.4B-10.6% | $29.6B-11.9% | $33.6B-0.6% | $33.8B+2.1% | $33.1B+11.8% | $29.6B-2.4% | $30.3B-4.7% | $31.8B+1.6% | $31.3B | N/A |
| Current Assets | $15.6B+11.6% | $13.9B-9.6% | $15.4B-7.6% | $16.7B-13.6% | $19.3B+5.9% | $18.2B+10.8% | $16.5B-9.4% | $18.2B-3.2% | $18.8B-2.7% | $19.3B | N/A |
| Cash & Equivalents | $4.8B+20.1% | $4.0B+13.2% | $3.5B-4.9% | $3.7B-38.4% | $6.0B+12.4% | $5.3B+10.1% | $4.8B+11.4% | $4.3B-1.4% | $4.4B+7.8% | $4.1B-14.5% | $4.8B |
| Inventory | $2.5B+3.7% | $2.5B-31.7% | $3.6B-18.5% | $4.4B+13.3% | $3.9B+13.5% | $3.4B+3.6% | $3.3B+0.1% | $3.3B+5.6% | $3.1B-10.2% | $3.5B+2.8% | $3.4B |
| Goodwill | $5.1B+0.3% | $5.1B-3.8% | $5.3B-35.1% | $8.1B+92.3% | $4.2B-0.8% | $4.3B+27.5% | $3.3B-1.4% | $3.4B-0.4% | $3.4B-28.8% | $4.8B | N/A |
| Total Liabilities | $18.4B+2.8% | $17.9B-9.3% | $19.7B-4.3% | $20.6B-5.2% | $21.8B-3.4% | $22.5B+8.5% | $20.7B+1.2% | $20.5B+2.8% | $19.9B+21.0% | $16.5B | N/A |
| Current Liabilities | $12.0B+1.0% | $11.9B-7.5% | $12.9B-7.9% | $14.0B-0.3% | $14.0B+0.7% | $13.9B+11.4% | $12.5B-0.1% | $12.5B+2.7% | $12.2B+9.7% | $11.1B | N/A |
| Non-Current Liabilities | $6.3B+3.1% | $6.1B-12.7% | $7.0B+3.1% | $6.8B-14.3% | $7.9B-9.9% | $8.8B+5.5% | $8.3B+5.2% | $7.9B+2.9% | $7.7B+45.0% | $5.3B | N/A |
| Long-Term Debt | $3.2B+9.7% | $2.9B-0.8% | $2.9B+12.4% | $2.6B+5.3% | $2.5B-9.2% | $2.7B-10.5% | $3.0B-13.1% | $3.5B-6.7% | $3.7B+81.7% | $2.1B-23.7% | $2.7B |
| Total Equity | $11.9B+39.4% | $8.5B-13.2% | $9.8B-24.1% | $12.9B+7.7% | $12.0B+13.8% | $10.6B+19.5% | $8.8B-9.9% | $9.8B-17.3% | $11.9B-20.0% | $14.8B-11.9% | $16.8B |
| Retained Earnings | $7.1B+84.7% | $3.8B-23.9% | $5.0B-38.6% | $8.2B+10.6% | $7.4B+26.6% | $5.8B+40.4% | $4.2B-17.3% | $5.0B-26.4% | $6.8B | N/A | N/A |
Not reported in any period shown, so not listed: Short-Term Investments, Accounts Receivable, Long-Term Investments.
ERIC Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $3.6B-14.5% | $4.2B+485.3% | $714.1M-75.9% | $3.0B-31.4% | $4.3B+22.5% | $3.5B+95.1% | $1.8B+71.4% | $1.1B-10.3% | $1.2B-23.9% | $1.5B-36.7% | $2.4B |
| Depreciation & Amortization | $1.0B-56.9% | $2.3B-46.8% | $4.4B+331.4% | $1.0B+2.1% | $991.1M-6.2% | $1.1B+8.6% | $972.9M+3.7% | $938.3M-72.5% | $3.4B+239.8% | $1.0B-17.0% | $1.2B |
| Capital Expenditures | $285.2M+34.9% | $211.4M-35.5% | $328.0M-23.7% | $429.8M+6.2% | $404.8M-26.0% | $547.3M-0.1% | $547.8M+22.2% | $448.4M-5.5% | $474.4M-29.7% | $675.0M-31.6% | $986.9M |
| Free Cash Flow | $3.3B-17.1% | $4.0B+928.0% | $386.0M-84.8% | $2.5B-35.2% | $3.9B+31.4% | $3.0B+136.6% | $1.3B+107.8% | $605.4M-13.6% | $700.3M-19.3% | $867.9M-40.2% | $1.5B |
| Investing Cash Flow | -$1.2Bn/m | -$1.4Bn/m | -$866.9Mn/m | -$3.3Bn/m | -$2.2Bn/m | -$1.9Bn/m | -$379.0Mn/m | -$466.1Mn/m | -$2.0Bn/m | -$912.2Mn/m | -$945.4M |
| Financing Cash Flow | -$1.5Bn/m | -$2.2B-2252.1% | $100.2Mn/m | -$1.5Bn/m | -$1.0Bn/m | -$1.5Bn/m | -$738.6Mn/m | -$459.9M-168.6% | $670.2Mn/m | -$1.3Bn/m | -$1.3B |
| Dividends Paid | $1.0B+24.1% | $834.2M-7.9% | $905.8M+12.1% | $807.8M+6.1% | $761.2M+4.2% | $730.4M+53.3% | $476.3M+23.3% | $386.3M-7.8% | $418.9M-69.0% | $1.4B+0.6% | $1.3B |
| Share Buybacks | N/A | $1.9M-61.9% | $5.0M | N/A | N/A | N/A | N/A | N/A | $12.6M-64.4% | $35.4M | N/A |
Not reported in any period shown, so not listed: Stock-Based Compensation.
ERIC Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | FY2520-F | FY2420-F | FY2320-F | FY2220-F | FY2120-F | FY2020-F | FY1920-F | FY1820-F | FY1720-F | FY1620-F | FY1520-F |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 47.6%+3.5pp | 44.1%+5.5pp | 38.6%-3.1pp | 41.7%-1.6pp | 43.4%+3.0pp | 40.3%+3.0pp | 37.3%+5.0pp | 32.4%+9.0pp | 23.3%-6.3pp | 29.6%-5.1pp | 34.8% |
| Operating Margin | 16.3%+14.6pp | 1.7%+9.5pp | -7.7%-17.7pp | 10.0%-3.7pp | 13.7%+1.7pp | 12.0%+7.3pp | 4.7%+4.1pp | 0.6%+17.5pp | -16.9%-19.3pp | 2.4%-6.5pp | 8.8% |
| Net Margin | 12.0%+12.0pp | 0.0%+10.1pp | -10.0%-16.9pp | 6.9%-2.9pp | 9.8%+2.2pp | 7.5%+6.5pp | 1.0%+4.1pp | -3.1%+12.8pp | -15.9%-16.2pp | 0.4%-5.1pp | 5.5% |
| Return on Equity | 25.9%+25.9pp | 0.0%+26.8pp | -26.8%-40.7pp | 13.9%-7.0pp | 20.9%+0.7pp | 20.2%+17.5pp | 2.7%+10.2pp | -7.5%+26.1pp | -33.6%-34.2pp | 0.6%-8.9pp | 9.5% |
| Return on Assets | 10.2%+10.2pp | 0.0%+8.9pp | -8.9%-14.3pp | 5.4%-2.1pp | 7.4%+1.0pp | 6.4%+5.6pp | 0.8%+3.2pp | -2.4%+10.1pp | -12.5%-12.8pp | 0.3% | N/A |
| Current Ratio | 1.29+0.1x | 1.170.0x | 1.200.0x | 1.19-0.2x | 1.38+0.1x | 1.310.0x | 1.32-0.1x | 1.45-0.1x | 1.54-0.2x | 1.74 | N/A |
| Debt-to-Equity | 0.27-0.1x | 0.340.0x | 0.30+0.1x | 0.200.0x | 0.20-0.1x | 0.26-0.1x | 0.340.0x | 0.350.0x | 0.31+0.2x | 0.140.0x | 0.16 |
| Liabilities-to-Equity | 1.55-0.6x | 2.10+0.1x | 2.01+0.4x | 1.59-0.2x | 1.81-0.3x | 2.13-0.2x | 2.35+0.3x | 2.09+0.4x | 1.68+0.6x | 1.11 | N/A |
| Asset Turnover | 0.850.0x | 0.850.0x | 0.89+0.1x | 0.780.0x | 0.76-0.1x | 0.860.0x | 0.820.0x | 0.780.0x | 0.790.0x | 0.78 | N/A |
| FCF Margin | 12.8%-4.9pp | 17.7%+16.3pp | 1.5%-8.2pp | 9.7%-5.5pp | 15.2%+4.7pp | 10.5%+5.3pp | 5.2%+2.6pp | 2.5%-0.2pp | 2.8%-0.8pp | 3.6%-1.4pp | 5.0% |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Ericsson ERIC | FY2025 | $25.7B | $3.1B | 12.0% | $36.1B | 54/100 |
| Nokia Corporation NOK | FY2025 | $23.3B | $764.0M | 3.3% | $52.1B | 57/100 |
| Hewlett Packard Enterprise Company HPE | FY2025 | $34.3B | $57.0M | 0.2% | $78.1B | 35/100 |
| Ubiquiti Inc. UI | FY2026 | $3.3B | $960.3M | 29.3% | $36.7B | 83/100 |
| Ciena Corporation CIEN | FY2025 | $4.8B | $123.3M | 2.6% | $49.6B | 56/100 |
| Zebra Technologies Corporation ZBRA | FY2025 | $5.4B | $419.0M | 7.8% | $17.9B | 52/100 |
Where Ericsson Ranks
Frequently Asked Questions
What is Ericsson's annual revenue?
Ericsson (ERIC) reported $25.7B in total revenue for fiscal year 2025. This represents a 14.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Ericsson's revenue growing?
Ericsson (ERIC) revenue grew by 14.6% year-over-year, from $22.4B to $25.7B in fiscal year 2025.
Is Ericsson profitable?
Yes, Ericsson (ERIC) reported a net income of $3.1B in fiscal year 2025, with a net profit margin of 12.0%.
What is Ericsson's EBITDA?
Ericsson (ERIC) had EBITDA of $5.2B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Ericsson have?
As of fiscal year 2025, Ericsson (ERIC) had $4.8B in cash and equivalents against $3.2B in long-term debt.
What is Ericsson's gross margin?
Ericsson (ERIC) had a gross margin of 47.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Ericsson's operating margin?
Ericsson (ERIC) had an operating margin of 16.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Ericsson's net profit margin?
Ericsson (ERIC) had a net profit margin of 12.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Ericsson's return on equity (ROE)?
Ericsson (ERIC) has a return on equity of 25.9% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Ericsson's free cash flow?
Ericsson (ERIC) generated $3.3B in free cash flow during fiscal year 2025. This represents a -17.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Ericsson's operating cash flow?
Ericsson (ERIC) generated $3.6B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Ericsson's total assets?
Ericsson (ERIC) had $30.3B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Ericsson's capital expenditures?
Ericsson (ERIC) invested $285.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Ericsson spend on research and development?
Ericsson (ERIC) invested $5.3B in research and development during fiscal year 2025.
What is Ericsson's current ratio?
Ericsson (ERIC) had a current ratio of 1.29 as of fiscal year 2025, which is considered adequate.
What is Ericsson's debt-to-equity ratio?
Ericsson (ERIC) had a debt-to-equity ratio of 0.27 as of fiscal year 2025. We compute it as long-term debt divided by total shareholder equity, where long-term debt is the noncurrent part of the company's borrowings, so debt due within the next twelve months is not counted.
What is Ericsson's liabilities-to-equity ratio?
Ericsson (ERIC) had a liabilities-to-equity ratio of 1.55 as of fiscal year 2025, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity.
What is Ericsson's return on assets (ROA)?
Ericsson (ERIC) had a return on assets of 10.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Ericsson's P/E ratio?
Ericsson (ERIC) trades at 11.7x earnings, its market capitalization divided by $3.1B net income, FY2025. The market capitalization is $36.1B as of Oct 29, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Ericsson's price-to-sales ratio?
Ericsson (ERIC) trades at 1.4x sales, its market capitalization divided by $25.7B revenue, FY2025. The market capitalization is $36.1B as of Oct 29, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Ericsson's Altman Z-Score?
Ericsson (ERIC) has an Altman Z-Score of 2.95, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Ericsson's Piotroski F-Score?
Ericsson (ERIC) has a Piotroski F-Score of 7 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Ericsson's earnings high quality?
Ericsson (ERIC) has an earnings quality ratio of 1.16x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Ericsson cover its interest payments?
Ericsson (ERIC) has an interest coverage ratio of 12.68x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Ericsson?
Ericsson (ERIC) scores 54 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is the average of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.