Telefonaktiebolaget LM Ericsson (publ) (ERCA) — Capital Reinvestment Ratio
Telefonaktiebolaget LM Ericsson (publ) (ERCA) has a Capital Reinvestment Ratio of 0.53x as of June 2026, meaning it reinvests 1% of its operating cash flow (€1.93 Billion) in capital expenditures (€1.02 Billion). Check tangible equity quality of Telefonaktiebolaget LM Ericsson (publ) to evaluate the tangible quality of the company's equity base.
Capital Reinvestment Ratio
Operating Cash Flow
Capital Expenditures
Data as of
Telefonaktiebolaget LM Ericsson (publ) Capital Reinvestment Ratio (2016–2025)
This chart tracks Telefonaktiebolaget LM Ericsson (publ)'s Capital Reinvestment Ratio across 10 annual periods. For the full cash flow conversion analysis, see Telefonaktiebolaget LM Ericsson (publ) cash flow conversion.
Annual Capital Reinvestment Ratio for Telefonaktiebolaget LM Ericsson (publ) (2016–2025)
Year-by-year Capital Reinvestment Ratio for Telefonaktiebolaget LM Ericsson (publ) from 2016 to 2025. See ERCA cash flow after capex ratio to measure how efficiently the company converts operating cash flow to free cash.
| Year | Reinvestment Ratio | Operating CF (EUR) | Capital Expenditures | YoY Change |
|---|---|---|---|---|
| 2025 | 0.11x | €32.95 Billion | €3.77 Billion | ▲ +45.3% |
| 2024 | 0.08x | €46.26 Billion | €3.64 Billion | ▼ -84.6% |
| 2023 | 0.51x | €12.59 Billion | €6.42 Billion | ▲ +255.1% |
| 2022 | 0.14x | €30.86 Billion | €4.43 Billion | ▲ +55.4% |
| 2021 | 0.09x | €39.06 Billion | €3.61 Billion | ▼ -40.5% |
| 2020 | 0.16x | €28.93 Billion | €4.49 Billion | ▼ -48.0% |
| 2019 | 0.30x | €16.87 Billion | €5.04 Billion | ▼ -29.8% |
| 2018 | 0.43x | €9.34 Billion | €3.98 Billion | ▲ +5.4% |
| 2017 | 0.40x | €9.60 Billion | €3.88 Billion | ▼ -46.7% |
| 2016 | 0.76x | €14.01 Billion | €10.61 Billion | — |