Ericsson LM Telephone Co key statistics and ratios

In fiscal 2025, Ericsson LM Telephone Co had return on equity of 28.5%, an operating margin of 16.3%, debt equal to 30.3% of equity and a current ratio of 1.29. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Ericsson LM Telephone Co: financial ratios, annual
Fiscal year	2015Dec 2015	2016Dec 2016	2017Dec 2017	2018Dec 2018	2019Dec 2019	2020Dec 2020	2021Dec 2021	2022Dec 2022	2023Dec 2023	2024Dec 2024	2025Dec 2025
Gross margin	34.8%	29.6%	23.3%	32.3%	37.3%	40.3%	43.4%	41.7%	38.6%	44.1%	47.6%
Operating margin	8.8%	2.4%	−16.9%	0.6%	4.6%	12.0%	13.7%	10.0%	−7.7%	1.7%	16.3%
Net margin	5.5%	0.4%	−15.9%	−3.1%	1.0%	7.5%	9.8%	6.9%	−10.0%	0.0%	12.0%
Free-cash-flow margin	5.0%	3.6%	2.8%	2.5%	5.2%	10.5%	15.2%	9.7%	1.5%	17.7%	12.8%
Return on equity	9.6%	0.6%	−28.8%	−7.0%	2.5%	19.6%	23.4%	14.9%	−21.9%	0.0%	28.5%
Return on assets	—	0.3%	−12.1%	−2.4%	0.8%	6.1%	7.9%	5.5%	−7.9%	0.0%	10.3%
Asset turnover	—	0.82	0.76	0.78	0.80	0.81	0.81	0.80	0.79	0.84	0.85
Current ratio	—	1.74	1.54	1.45	1.32	1.31	1.38	1.19	1.20	1.17	1.29
Debt to equity	0.0%	23.5%	34.5%	38.2%	55.3%	40.9%	38.0%	26.6%	56.6%	44.5%	30.3%
Interest cover (operating income ÷ interest)	—	—	—	—	19.2x	56.8x	74.6x	58.2x	n/m	10.2x	96.1x
Effective tax rate	31.2%	65.0%	—	—	79.0%	35.2%	21.4%	22.3%	—	85.6%	25.0%
R&D as % of revenue	14.1%	14.4%	18.4%	18.5%	17.1%	17.1%	18.1%	17.4%	19.2%	21.6%	20.6%
Capital spending as % of revenue	3.4%	2.8%	1.9%	1.9%	2.3%	1.9%	1.6%	1.6%	1.3%	0.9%	1.1%
Free cash flow ÷ net income	90.5%	946.1%	—	—	528.8%	139.8%	156.0%	140.9%	—	>999%	106.7%
Dividends ÷ net income	83.7%	>999%	—	—	200.2%	34.3%	30.4%	44.9%	—	>999%	33.6%
Dividends and buybacks ÷ free cash flow	92.5%	155.6%	59.8%	63.8%	37.9%	24.5%	19.5%	31.9%	234.6%	21.0%	31.5%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

5 of 6 checks passed · December 31, 2025

What it owns · $30.3bn

Short-term assets $15.6bnLonger-term assets $14.7bn

What it owes, and who funded it · $23.9bn

Short-term liabilities $12.0bnShareholders' equity $11.9bn

Short-term assets cover short-term liabilities $15.6bn of assets due within a year against $12.0bn of liabilities due within a year.
Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
More cash than debt $4.8bn of cash against $3.6bn of debt.
Debt below 40% of shareholders' equity Debt is 30% of equity.
Debt burden no higher than five years ago Debt to equity moved from 26% to 30% over five years.
A year's operating cash flow covers at least 20% of debt $3.4bn of operating cash flow against $3.6bn of debt.
Operating profit covers interest at least five times over Operating income of $4.0bn against $41m of interest.

From Ericsson LM Telephone Co's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

Not assessed: fewer than five years of comparable figures in the filings. AI disruption exposure for this industry: Medium.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

Head to head: ERIC vs MSI ANET vs ERIC CSCO vs ERIC

More: Communications Equipment stocks compared, Technology sector, rankings of US companies

Figures from Ericsson LM Telephone Co's SEC filings (10-K and 10-Q), retrieved November 1, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Ericsson LM Telephone Co.