Telefonaktiebolaget LM Ericsson (publ) (ERCA) — Cash Flow Reinvestment Rate
Telefonaktiebolaget LM Ericsson (publ) (ERCA) has a Cash Flow Reinvestment Rate of 1.34x as of June 2026, reinvesting €2.58 Billion (capex €1.02 Billion plus investments €-1.56 Billion) from operating cash flow of €1.93 Billion. See Telefonaktiebolaget LM Ericsson (publ) free cash flow efficiency to measure how efficiently the company converts operating cash flow to free cash.
Reinvestment Rate
Total Reinvested
Operating Cash Flow
Capital Expenditures
Telefonaktiebolaget LM Ericsson (publ) Cash Flow Reinvestment Rate (2016–2025)
Historical reinvestment intensity for Telefonaktiebolaget LM Ericsson (publ) across 10 annual periods. For the full cash flow conversion analysis, see Telefonaktiebolaget LM Ericsson (publ) cash flow conversion.
Annual Cash Flow Reinvestment Rate for Telefonaktiebolaget LM Ericsson (publ) (2016–2025)
Year-by-year capital reinvestment analysis for Telefonaktiebolaget LM Ericsson (publ). See financial agility of Telefonaktiebolaget LM Ericsson (publ) to measure the company's free cash flow as a share of total liabilities.
| Year | Reinvestment Rate | Total Reinvested (EUR) | Operating CF | Capex | YoY Change |
|---|---|---|---|---|---|
| 2025 | 0.78x | €25.84 Billion | €32.95 Billion | €3.77 Billion | ▲ +201.9% |
| 2024 | 0.26x | €12.02 Billion | €46.26 Billion | €3.64 Billion | ▼ -83.8% |
| 2023 | 1.61x | €20.22 Billion | €12.59 Billion | €6.42 Billion | ▲ +57.8% |
| 2022 | 1.02x | €31.41 Billion | €30.86 Billion | €4.43 Billion | ▲ +110.7% |
| 2021 | 0.48x | €18.87 Billion | €39.06 Billion | €3.61 Billion | ▲ +136.5% |
| 2020 | 0.20x | €5.91 Billion | €28.93 Billion | €4.49 Billion | ▼ -62.5% |
| 2019 | 0.55x | €9.20 Billion | €16.87 Billion | €5.04 Billion | ▼ -14.0% |
| 2018 | 0.63x | €5.93 Billion | €9.34 Billion | €3.98 Billion | ▼ -60.9% |
| 2017 | 1.62x | €15.58 Billion | €9.60 Billion | €3.88 Billion | ▲ +20.3% |
| 2016 | 1.35x | €18.89 Billion | €14.01 Billion | €10.61 Billion | — |