Telefonaktiebolaget LM Ericsson (publ) (ERCA) — Cash Flow Quality Index

Latest as of September 2025: 0.71x

Telefonaktiebolaget LM Ericsson (publ) (ERCA) has a Cash Flow Quality Index of 0.71x as of September 2025. Operating cash flow of €7.94 Billion is below net income of €11.15 Billion, suggesting accrual-heavy earnings not yet converted to cash. Explore ERCA long-term investment intensity to see how much of total assets are deployed in long-term investments.

Cash Flow Quality Index

0.71x
Operating CF / Net Income

Operating Cash Flow

€7.94 Billion
EUR

Net Income

€11.15 Billion
EUR

Data as of

Sep 2025
Most recent filing

Telefonaktiebolaget LM Ericsson (publ) Cash Flow Quality Index (2016–2024)

Historical Cash Flow Quality Index for Telefonaktiebolaget LM Ericsson (publ) across 6 annual periods. Values consistently above 1.0x indicate high-quality earnings. Check tangible net worth ratio of Telefonaktiebolaget LM Ericsson (publ) to evaluate the tangible quality of the company's equity base.

Annual Cash Flow Quality Index for Telefonaktiebolaget LM Ericsson (publ) (2016–2024)

Year-by-year earnings quality comparison for Telefonaktiebolaget LM Ericsson (publ). For live market cap and the full company financial profile, see Telefonaktiebolaget LM Ericsson (publ) (ERCA) total market value.

Year Quality Index Operating CF (EUR) Net Income YoY Change
2024 2313.05x €46.26 Billion €20.00 Million ▲ +140228.4%
2022 1.65x €30.86 Billion €18.72 Billion ▼ -3.0%
2021 1.70x €39.06 Billion €23.00 Billion ▲ +2.6%
2020 1.65x €28.93 Billion €17.48 Billion ▼ -78.2%
2019 7.59x €16.87 Billion €2.22 Billion ▼ -7.0%
2016 8.16x €14.01 Billion €1.72 Billion
Cash Flow Quality Index = Operating Cash Flow / Net Income. Ratios above 1.0x indicate cash-backed earnings.