Reading the annual reports…
First time this company is opened: we are analysing its official reports. This can take up to a minute; after that the page loads instantly.
First time this company is opened: we are analysing its official reports. This can take up to a minute; after that the page loads instantly.
ERIC · Nasdaq · United States · Radio & Tv Broadcasting & Communications Equipment
In shortERICSSON LM TELEPHONE CO is profitable, generates cash and holds more cash than debt, with revenue shrinking (−4.5% last year).
Financial health
Solid
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 16.3% | 71/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 12.0% | 68/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 27.9% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 20.4% | 100/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.29× | 41/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.30× | 95/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | Net cash | 100/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | 12.68× | 100/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 3.13 | 52/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 12.8% | 71/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 1.07× | 96/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 4 of 5 | 80/100 |
|---|---|---|
| Years of revenue decline (last 5) | 4 of 5 | 0/100 |
| Revenue growth volatility | 9.3% | 77/100 |
| Operating margin volatility | 9.8% | 20/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | -4.5% | 0/100 |
|---|---|---|
| EPS growth, 3-year average | 14.8% | 99/100 |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
SEK millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 232,314 | 271,546 | 263,351 | 247,880 | 236,681 |
| Cost of revenue | 131,565 | 158,251 | 161,749 | 138,515 | 124,013 |
| Gross profit | 100,749 | 113,295 | 101,602 | 109,365 | 112,668 |
| Research & development | 42,074 | 47,298 | 50,664 | 53,514 | 48,852 |
| Selling, general & admin | 26,957 | 35,692 | 39,255 | 51,657 | 33,685 |
| Operating income | 31,780 | 27,020 | (20,326) | 4,313 | 38,634 |
| Interest expense | 1,674 | 1,930 | 4,118 | 4,103 | 3,047 |
| Pre-tax income | 29,250 | 24,609 | (23,319) | 2,589 | 38,302 |
| Income tax | 6,270 | 5,497 | 2,785 | 2,215 | 9,588 |
| Net income | 22,694 | 18,724 | (26,446) | 20 | 28,428 |
| Diluted EPS | kr6.81 | kr5.62 | −kr7.94 | kr0.01 | kr8.51 |
| Diluted shares (millions) | 3,332 | 3,334 | 3,330 | 3,339 | 3,342 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
3.13 Safe zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
8/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Dec 31, 2025 · Data updated Mar 12, 2026