Telefonaktiebolaget LM Ericsson (publ) Cash Flow Conversion Efficiency
Telefonaktiebolaget LM Ericsson (publ) cash flow conversion efficiency. Based on the latest financial reports, Telefonaktiebolaget LM Ericsson (publ) (ERCA) has a cash flow conversion efficiency ratio of 0.018x as of June 2026. Cash flow conversion efficiency measures how effectively a company's net assets (equity) generate operating cash flow. It is calculated by dividing operating cash flow (€1.93 Billion ≈ $2.26 Billion USD) by net assets (€104.76 Billion ≈ $122.48 Billion USD). A higher ratio indicates that the company is more efficient at using its equity to generate cash flow from its core operations.
Cash Flow Conversion Efficiency of Telefonaktiebolaget LM Ericsson (publ) (2016–2025)
Cash flow conversion efficiency of Telefonaktiebolaget LM Ericsson (publ) from 2016 to 2025. This chart illustrates how Telefonaktiebolaget LM Ericsson (publ)'s cash flow conversion efficiency has evolved over time, based on yearly financial data. View ERCA share price today for real-time trading data and today's change.
Telefonaktiebolaget LM Ericsson (publ) Cash Flow Conversion Ratio Explained
Telefonaktiebolaget LM Ericsson (publ) cash flow conversion ratio divides operating cash flow by net assets, so a higher ratio means more cash generated from each unit of shareholder equity.
Telefonaktiebolaget LM Ericsson (publ) Competitors by Cash Flow Conversion Efficiency
The table below lists competitors of Telefonaktiebolaget LM Ericsson (publ) ranked by their cash flow conversion efficiency. Also see Telefonaktiebolaget LM Ericsson (publ) stock valuation for the company's overall valuation and market capitalisation.
| Company | Cash Flow Conversion Efficiency |
|---|---|
|
DTE Energy Company
NYSE:DTE
|
0.074x |
|
Gulf Energy Development Public Company Limited
BK:GULF
|
0.021x |
|
Gold Fields Ltd
JSE:GFI
|
0.264x |
|
Banco Bradesco S.A
F:BREC
|
-0.288x |
|
ResMed Inc
NYSE:RMD
|
0.085x |
|
Jentech Precision Industrial Co Ltd
TW:3653
|
0.065x |
|
Credicorp Ltd
NYSE:BAP
|
0.119x |
|
RYANAIR HLDGS ADR NEW/5
F:RY4D
|
-0.008x |
Annual Cash Flow Conversion Efficiency for Telefonaktiebolaget LM Ericsson (publ) (2016–2025)
The table below shows the annual cash flow conversion efficiency of Telefonaktiebolaget LM Ericsson (publ) from 2016 to 2025. Review ERCA free cash flow to operating cash ratio to assess how much free cash flow the company generates relative to operating cash flow.
| Year | Net Assets | Operating Cash Flow | Cash Flow Conversion Efficiency | Change |
|---|---|---|---|---|
| 2025-12-31 | €110.26 Billion ≈ $128.91 Billion |
€32.95 Billion ≈ $38.53 Billion |
0.299x | -39.93% |
| 2024-12-31 | €92.98 Billion ≈ $108.71 Billion |
€46.26 Billion ≈ $54.08 Billion |
0.498x | +284.93% |
| 2023-12-31 | €97.41 Billion ≈ $113.88 Billion |
€12.59 Billion ≈ $14.72 Billion |
0.129x | -44.17% |
| 2022-12-31 | €133.30 Billion ≈ $155.85 Billion |
€30.86 Billion ≈ $36.08 Billion |
0.232x | -36.53% |
| 2021-12-31 | €107.10 Billion ≈ $125.21 Billion |
€39.06 Billion ≈ $45.67 Billion |
0.365x | +7.38% |
| 2020-12-31 | €85.18 Billion ≈ $99.58 Billion |
€28.93 Billion ≈ $33.83 Billion |
0.340x | +64.83% |
| 2019-12-31 | €81.88 Billion ≈ $95.72 Billion |
€16.87 Billion ≈ $19.73 Billion |
0.206x | +93.61% |
| 2018-12-31 | €87.77 Billion ≈ $102.61 Billion |
€9.34 Billion ≈ $10.92 Billion |
0.106x | +11.06% |
| 2017-12-31 | €100.18 Billion ≈ $117.12 Billion |
€9.60 Billion ≈ $11.22 Billion |
0.096x | -3.89% |
| 2016-12-31 | €140.49 Billion ≈ $164.25 Billion |
€14.01 Billion ≈ $16.38 Billion |
0.100x | -- |
About Telefonaktiebolaget LM Ericsson (publ)
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment of… Read more