Telefonaktiebolaget LM Ericsson (publ) (ERCA) — Capital Reinvestment Ratio
Telefonaktiebolaget LM Ericsson (publ) (ERCA) has a Capital Reinvestment Ratio of 0.10x as of September 2025, meaning it reinvests 0% of its operating cash flow (€7.94 Billion) in capital expenditures (€777.00 Million). See how much free cash does Telefonaktiebolaget LM Ericsson (publ) generate to measure how efficiently the company converts operating cash flow to free cash.
Capital Reinvestment Ratio
Operating Cash Flow
Capital Expenditures
Data as of
Telefonaktiebolaget LM Ericsson (publ) Capital Reinvestment Ratio (2016–2024)
This chart tracks Telefonaktiebolaget LM Ericsson (publ)'s Capital Reinvestment Ratio across 9 annual periods.
Annual Capital Reinvestment Ratio for Telefonaktiebolaget LM Ericsson (publ) (2016–2024)
Year-by-year Capital Reinvestment Ratio for Telefonaktiebolaget LM Ericsson (publ) from 2016 to 2024. For live market cap and broader valuation context, see market cap of Telefonaktiebolaget LM Ericsson (publ).
| Year | Reinvestment Ratio | Operating CF (EUR) | Capital Expenditures | YoY Change |
|---|---|---|---|---|
| 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 | — |