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Telefonaktiebolaget LM Ericsson (publ) (ERIC) 10-Year Financial Performance & Capital Metrics

ERIC • • Industrial / General
TechnologyCommunication EquipmentWireless Infrastructure & BackhaulWireless Backhaul Systems
AboutTelefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment offers radio access network solutions for various network spectrum bands, including integrated high-performing hardware and software. This segment also provides integrated antenna and transport solutions; and a range of service portfolio covering network deployment and support. The Digital Services segment offers software-based solutions for business support systems, operational support systems, communication services, core networks, and cloud infrastructure. The Managed Services segment provides networks and IT managed, network design and optimization, and application development and maintenance services to telecom operators. The Emerging Business and Other segment includes emerging businesses comprising Internet of Things; iconectiv; Cradlepoint that offers wireless edge WAN 4G and 5G enterprise solutions; and Red Bee Media, MediaKind, and other new businesses. It operates in North America, Europe and Latin America, the Middle East and Africa, South East Asia, Oceania, India, North East Asia, and internationally. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.Show more
  • Revenue $259.37B +3.8%
  • EBITDA $19.84B -25.2%
  • Net Income $21M +100.1%
  • EPS (Diluted) 0.00 +100.0%
  • Gross Margin 44.95% +13.4%
  • EBITDA Margin 7.65% -27.9%
  • Operating Margin 3.61% -47.0%
  • Net Margin 0.01% +100.1%
  • ROE 0.02% +100.1%
  • ROIC 6.64% -34.6%
  • Debt/Equity 0.49 -12.2%
  • Interest Coverage 2.53 -51.2%
Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

  • ✓Strong Piotroski F-Score: 7/9
  • ✓FCF machine: 17.7% free cash flow margin
  • ✓High quality earnings: Operating CF exceeds net income
  • ✓Trading at only 0.3x book value

✗Weaknesses

  • ✗Profits declining 60.3% over 5 years
  • ✗Dividend payout exceeds 100% of earnings

* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.

Price & Volume

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Growth Metrics

Revenue CAGR

10Y1.03%
5Y3.53%
3Y1.98%
TTM-2.18%

Profit (Net Income) CAGR

10Y-46.96%
5Y-60.34%
3Y-90.43%
TTM1758.78%

EPS CAGR

10Y-
5Y-
3Y-
TTM1786.05%

ROCE

10Y Avg10.06%
5Y Avg13.44%
3Y Avg10.1%
Latest5.4%

Peer Comparison

Wireless Backhaul Systems
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Size & Scale
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Sector-Specific
NameMarket CapCurrent PriceP/E RatioRevenue Growth 1YNet MarginROEFCF YieldDebt/Equity
AVNWAviat Networks, Inc.283.45M22.08220.806.5%2.6%4.44%0.35
NOKNokia Oyj36.66B6.6128.74-9.07%5.95%6.09%5.51%0.23
CRNTCeragon Networks Ltd.210.34M2.348.6713.54%0.38%0.81%4.63%0.25
ERICTelefonaktiebolaget LM Ericsson (publ)29.18B9.503.83%10.24%23.76%100%0.49

Profit & Loss

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Sales/Revenue+246.13B237.48B201.14B218.04B218.11B206.97B244.54B274.27B249.8B259.37B
Revenue Growth %0.05%-0.04%-0.15%0.08%0%-0.05%0.18%0.12%-0.09%0.04%
Cost of Goods Sold+161.68B164.91B151.7B141.24B136.39B122.85B138.2B159.64B150.77B142.79B
COGS % of Revenue0.66%0.69%0.75%0.65%0.63%0.59%0.57%0.58%0.6%0.55%
Gross Profit+84.45B72.57B49.45B76.8B81.72B84.12B106.34B114.63B99.03B116.57B
Gross Margin %0.34%0.31%0.25%0.35%0.37%0.41%0.43%0.42%0.4%0.45%
Gross Profit Growth %0.02%-0.14%-0.32%0.55%0.06%0.03%0.26%0.08%-0.14%0.18%
Operating Expenses+57.81B58.24B63.24B66.11B60.65B57.81B71.99B83.66B82.02B107.22B
OpEx % of Revenue0.23%0.25%0.31%0.3%0.28%0.28%0.29%0.31%0.33%0.41%
Selling, General & Admin28.45B29.35B31.02B27.21B23.72B22.81B27.85B35.94B36.27B53.44B
SG&A % of Revenue0.12%0.12%0.15%0.12%0.11%0.11%0.11%0.13%0.15%0.21%
Research & Development29.36B28.89B32.22B38.9B36.93B35B44.14B47.72B45.75B53.78B
R&D % of Revenue0.12%0.12%0.16%0.18%0.17%0.17%0.18%0.17%0.18%0.21%
Other Operating Expenses0000000000
Operating Income+26.64B14.33B-13.8B10.69B21.07B26.31B34.34B30.97B17.01B9.36B
Operating Margin %0.11%0.06%-0.07%0.05%0.1%0.13%0.14%0.11%0.07%0.04%
Operating Income Growth %0.26%-0.46%-1.96%1.78%0.97%0.25%0.31%-0.1%-0.45%-0.45%
EBITDA+36.83B23.81B-5.52B15.52B27.87B32.61B41.83B39.61B26.52B19.84B
EBITDA Margin %0.15%0.1%-0.03%0.07%0.13%0.16%0.17%0.14%0.11%0.08%
EBITDA Growth %0.18%-0.35%-1.23%3.81%0.8%0.17%0.28%-0.05%-0.33%-0.25%
D&A (Non-Cash Add-back)10.19B9.48B8.28B4.82B6.8B6.3B7.49B8.64B9.5B10.48B
EBIT21.75B6.02B-33.81B500.53M11.01B26.48B32.9B26.81B-18.95B6.67B
Net Interest Income+-1.52B-1.72B-1.42B-1.47B-940.73M-1.27B-1.45B-1.24B-1.49B-1.07B
Interest Income383.76M34.14M5.88M599.81M1.34B708.94M378.94M724.21M1.8B2.63B
Interest Expense1.9B1.76B1.43B2.07B2.28B1.98B1.83B1.97B3.29B3.7B
Other Income/Expense-6.84B-10.04B-21.42B-12.21B-12.66B-2.07B-3.55B-6.12B-39.13B-6.65B
Pretax Income+19.81B4.3B-35.22B-1.51B8.41B24.24B30.79B24.86B-22.12B2.71B
Pretax Margin %0.08%0.02%-0.18%-0.01%0.04%0.12%0.13%0.09%-0.09%0.01%
Income Tax+6.18B2.27B-3.45B4.98B6.64B8.54B6.6B5.55B2.64B2.32B
Effective Tax Rate %0.68%0.43%0.91%4.46%0.25%0.64%0.78%0.76%1.13%0.01%
Net Income+13.51B1.83B-31.9B-6.75B2.13B15.57B23.89B18.91B-25.08B20.93M
Net Margin %0.05%0.01%-0.16%-0.03%0.01%0.08%0.1%0.07%-0.1%0%
Net Income Growth %0.14%-0.86%-18.43%0.79%1.32%6.3%0.53%-0.21%-2.33%1%
Net Income (Continuing)13.63B2.02B-31.76B-6.49B1.77B15.7B24.19B19.3B-24.76B391.33M
Discontinued Operations0000000000
Minority Interest838.88M678.66M649.91M803.8M-660.66M-1.49B-1.67B-1.48B-1.26B-1.3B
EPS (Diluted)+4.120.55-9.74-2.050.644.687.175.67-7.530.00
EPS Growth %0.13%-0.87%-18.71%0.79%1.31%6.31%0.53%-0.21%-2.33%1%
EPS (Basic)4.160.57-9.74-2.050.654.697.185.68-7.530.00
Diluted Shares Outstanding3.38B3.3B3.32B3.32B3.32B3.33B3.33B3.33B3.33B3.34B
Basic Shares Outstanding3.25B3.26B3.28B3.29B3.31B3.32B3.33B3.33B3.33B3.33B
Dividend Payout Ratio0.81%7.03%--2%0.34%0.3%0.44%-449.84%

Balance Sheet

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Total Current Assets+189.05B176.72B156.78B163.57B149.32B149.53B174.47B170.5B154.86B154.49B
Cash & Short-Term Investments66.1B50.56B43.53B45.68B50.29B50.34B66.85B46.19B44.74B56.5B
Cash Only40.12B37.17B36.67B38.96B43.73B43.53B53.95B37.62B35.16B43.94B
Short-Term Investments25.98B13.4B6.86B6.72B6.56B6.81B12.91B8.57B9.58B12.56B
Accounts Receivable89.2B89.77B84.54B86.06B67.71B68.82B69.81B76.41B71.4B68.13B
Days Sales Outstanding132.27137.98153.41144.07113.31121.36104.2101.69104.3395.87
Inventory28.88B31.86B26.11B29.69B29.94B28.51B35.52B45.44B36.17B27.2B
Days Inventory Outstanding65.1970.5262.8176.7380.1384.7293.82103.8987.5769.54
Other Current Assets0000000000
Total Non-Current Assets+97.78B111.68B115.6B112.46B121.25B123.52B132.47B177.57B155.03B143.51B
Property, Plant & Equipment15.86B16.82B13.14B13.04B21.67B21.33B21.49B21.69B18.5B17.05B
Fixed Asset Turnover15.52x14.12x15.31x16.72x10.07x9.71x11.38x12.65x13.50x15.21x
Goodwill40.98B43.62B28.42B30.48B30.27B34.88B38.13B82.96B52.9B56.14B
Intangible Assets14.77B15.91B8.93B7.83B6.34B8.65B7.34B29.47B27.32B12.56B
Long-Term Investments9.83B16.2B35.85B34.35B30.29B30.41B40.53B19.25B20.85B28.03B
Other Non-Current Assets0000000000
Total Assets+286.83B288.41B272.38B276.03B270.57B273.05B306.94B348.07B309.89B298.01B
Asset Turnover0.86x0.82x0.74x0.79x0.81x0.76x0.80x0.79x0.81x0.87x
Asset Growth %0.08%0.01%-0.06%0.01%-0.02%0.01%0.12%0.13%-0.11%-0.04%
Total Current Liabilities+86.87B95.28B101.71B112.57B113.33B114.12B126.71B142.85B129.29B132.03B
Accounts Payable22.33B25.46B26.9B30.33B29.49B31.93B35.62B37.71B27.75B30.21B
Days Payables Outstanding50.4256.3464.7178.3878.9394.8794.0686.2167.1777.22
Short-Term Debt2.37B8.08B2.6B2.29B11.38B10.12B11.79B8.31B19.87B8.28B
Deferred Revenue (Current)1000K1000K1000K1000K1000K1000K1000K1000K1000K1000K
Other Current Liabilities33.86B32.8B33.37B37.2B31.38B30.52B28.27B33.54B30.3B31.05B
Current Ratio2.18x1.85x1.54x1.45x1.32x1.31x1.38x1.19x1.20x1.17x
Quick Ratio1.84x1.52x1.28x1.19x1.05x1.06x1.10x0.88x0.92x0.96x
Cash Conversion Cycle147.05152.16151.51142.42114.5111.21103.95119.37124.7388.19
Total Non-Current Liabilities+52.96B51.88B70.97B74.38B77.8B73.91B73.34B74.44B83.27B72.88B
Long-Term Debt22.14B18.75B31.17B31.33B27.41B22.18B22.2B26.43B29.19B31.94B
Capital Lease Obligations546.62M0007.37B7.09B7.07B6.69B5.22B5.37B
Deferred Tax Liabilities5.65B5.68B7.73B3.94B3.63B3.09B2.8B9.86B16.97B6.57B
Other Non-Current Liabilities24.63B27.44B32.07B39.11B39.4B41.55B41.28B31.46B31.88B28.99B
Total Liabilities139.83B147.15B172.67B186.95B191.13B188.03B200.05B217.3B212.56B204.91B
Total Debt+25.06B26.83B33.77B33.62B46.16B39.39B41.05B41.43B54.28B45.59B
Net Debt-15.07B-10.34B-2.9B-5.34B2.42B-4.14B-12.89B3.81B19.12B1.65B
Debt / Equity0.17x0.19x0.34x0.38x0.58x0.46x0.38x0.32x0.56x0.49x
Debt / EBITDA0.68x1.13x-2.17x1.66x1.21x0.98x1.05x2.05x2.30x
Net Debt / EBITDA-0.41x-0.43x--0.34x0.09x-0.13x-0.31x0.10x0.72x0.08x
Interest Coverage13.99x8.16x-9.66x5.16x9.24x13.32x18.74x15.74x5.17x2.53x
Total Equity+146.99B141.25B99.71B89.08B79.43B85.03B106.89B130.77B97.33B93.1B
Equity Growth %0.12%-0.04%-0.29%-0.11%-0.11%0.07%0.26%0.22%-0.26%-0.04%
Book Value per Share43.4642.7730.0626.8523.9325.5632.0839.2229.2327.88
Total Shareholders' Equity146.16B140.58B99.06B88.27B80.09B86.52B108.57B132.25B98.59B94.4B
Common Stock16.48B16.75B17.04B16.92B16.17B16.64B16.64B16.36B16.71B16.76B
Retained Earnings105B98.96B56.75B45.27B37.7B47.87B66.79B83.59B50.42B42.35B
Treasury Stock0000000000
Accumulated OCI000979.37M2.22B-2.68B453.12M8.05B6.75B10.53B
Minority Interest838.88M678.66M649.91M803.8M-660.66M-1.49B-1.67B-1.48B-1.26B-1.3B

Cash Flow

Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024
Cash from Operations+20.53B14.95B9.4B9.66B16.2B25.77B41.12B31.17B6.81B48.4B
Operating CF Margin %0.08%0.06%0.05%0.04%0.07%0.12%0.17%0.11%0.03%0.19%
Operating CF Growth %0.07%-0.27%-0.37%0.03%0.68%0.59%0.6%-0.24%-0.78%6.11%
Net Income13.51B1.83B-31.9B-6.75B2.13B15.57B23.89B18.91B-25.08B20.93M
Depreciation & Amortization10.19B9.48B8.28B4.82B6.8B6.3B7.49B8.64B9.5B10.48B
Stock-Based Compensation0000000000
Deferred Taxes0000000000
Other Non-Cash Items510.36M-2.77B10.79B3.54B4.57B7.11B5.53B2.99B33.77B14.03B
Working Capital Changes-3.68B6.4B22.24B8.05B2.69B-3.21B4.21B625.22M-11.38B23.87B
Change in Receivables6.98B6.33B1.35B-2.12B10.55B-2.84B1.63B4.81B6.01B2.7B
Change in Inventory-364.82M-653.96M4.62B-4.97B250.54M342M-5.86B-7.82B8.83B10.68B
Change in Payables-2.67B2.96B1.85B2.52B-357.09M3.83B1.46B-2.02B-9.52B518.98M
Cash from Investing+-7.96B-8.84B-15.74B-4.27B-3.4B-13.54B-20.93B-34.74B-8.26B-16.69B
Capital Expenditures-11.6B-11.32B-5.21B-5.07B-6.4B-4.73B-4.87B-6.26B-5.19B-3.81B
CapEx % of Revenue0.05%0.05%0.03%0.02%0.03%0.02%0.02%0.02%0.02%0.01%
Acquisitions----------
Investments----------
Other Investing-541.26M2.63B-453.46M-540.86M-317.74M713.39M-137.89M-3.76B2.18B-3.92B
Cash from Financing+-10.68B-12.53B5.37B-4.22B-6.62B-11.13B-9.8B-16.09B955.17M-24.97B
Debt Issued (Net)----------
Equity Issued (Net)----------
Dividends Paid-11B-12.86B-3.35B-3.54B-4.27B-5.34B-7.25B-8.41B-8.53B-9.41B
Share Repurchases----------
Other Financing310M-260.3M213.51M80.66M-2.9B-2.15B-4.79B-2.35B-1.75B-2.68B
Net Change in Cash----------
Free Cash Flow+12.22B8.41B5.61B5.55B11.28B21.77B37.26B26.65B3.68B45.96B
FCF Margin %0.05%0.04%0.03%0.03%0.05%0.11%0.15%0.1%0.01%0.18%
FCF Growth %-0.11%-0.31%-0.33%-0.01%1.03%0.93%0.71%-0.28%-0.86%11.49%
FCF per Share3.612.551.691.673.406.5411.187.991.1113.76
FCF Conversion (FCF/Net Income)1.52x8.16x-0.29x-1.43x7.59x1.65x1.72x1.65x-0.27x2313.01x
Interest Paid0000000000
Taxes Paid0000000000

Key Ratios

Metric2015201620172018201920202021202220232024
Return on Equity (ROE)9.72%1.27%-26.48%-7.15%2.53%18.94%24.89%15.92%-21.99%0.02%
Return on Invested Capital (ROIC)16.14%8.18%-9.09%8.89%19.09%24.25%29.46%20.32%10.17%6.64%
Gross Margin34.31%30.56%24.58%35.22%37.47%40.64%43.49%41.79%39.64%44.95%
Net Margin5.49%0.77%-15.86%-3.1%0.98%7.52%9.77%6.9%-10.04%0.01%
Debt / Equity0.17x0.19x0.34x0.38x0.58x0.46x0.38x0.32x0.56x0.49x
Interest Coverage13.99x8.16x-9.66x5.16x9.24x13.32x18.74x15.74x5.17x2.53x
FCF Conversion1.52x8.16x-0.29x-1.43x7.59x1.65x1.72x1.65x-0.27x2313.01x
Revenue Growth5.18%-3.51%-15.3%8.4%0.03%-5.11%18.15%12.16%-8.92%3.83%

Revenue by Segment

2018201920202021202220232024
Services89.41B93.05B86.2B80.12B97.52B104.59B97.73B
Services Growth-4.07%-7.36%-7.06%21.72%7.24%-6.56%
Hardware76.79B86.13B96.29B106.4B119.22B99.64B93.52B
Hardware Growth-12.16%11.80%10.49%12.05%-16.42%-6.14%
Software44.63B48.04B49.89B45.8B54.81B59.12B56.63B
Software Growth-7.62%3.86%-8.21%19.68%7.87%-4.22%

Revenue by Geography

2018201920202021202220232024
North America-70.22B73.78B77.46B95.39B59.23B72.89B
North America Growth--5.06%4.99%23.16%-37.91%23.06%
Europe And Latin America--55.74B60.27B66.79B64.88B63.41B
Europe And Latin America Growth---8.12%10.81%-2.85%-2.27%
Other Regions-16.29B16.19B15.85B27.11B38.25B39.64B
Other Regions Growth---0.59%-2.09%71.01%41.10%3.64%
South East Asia Oceania And India--30.05B28.83B32.95B53.32B32.41B
South East Asia Oceania And India Growth----4.06%14.30%61.81%-39.21%
Middle East And Africa-25.52B23.3B20.79B22.57B23.74B20.77B
Middle East And Africa Growth---8.72%-10.79%8.59%5.17%-12.50%
North East Asia-26.4B33.33B29.12B26.73B23.93B18.76B
North East Asia Growth--26.27%-12.64%-8.20%-10.48%-21.61%
European Union1-35.73B-----
European Union1 Growth-------
CHINA14.6B15.86B-----
CHINA Growth-8.62%-----
SWEDEN2.31B589M-----
SWEDEN Growth--74.56%-----
European union35.94B------
European union Growth-------

Frequently Asked Questions

Growth & Financials

Telefonaktiebolaget LM Ericsson (publ) (ERIC) reported $236.84B in revenue for fiscal year 2024. This represents a 1% decrease from $239.45B in 2011.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) grew revenue by 3.8% over the past year. Growth has been modest.

Yes, Telefonaktiebolaget LM Ericsson (publ) (ERIC) is profitable, generating $24.25B in net income for fiscal year 2024 (0.0% net margin).

Dividend & Returns

Yes, Telefonaktiebolaget LM Ericsson (publ) (ERIC) pays a dividend with a yield of 29.68%. This makes it attractive for income-focused investors.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) has a return on equity (ROE) of 0.0%. This is below average, suggesting room for improvement.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) generated $32.15B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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