Telefonaktiebolaget LM Ericsson (publ) (ERCA) — Cash Flow Reinvestment Rate

Latest as of September 2025: 0.86x

Telefonaktiebolaget LM Ericsson (publ) (ERCA) has a Cash Flow Reinvestment Rate of 0.86x as of September 2025, reinvesting €6.86 Billion (capex €777.00 Million plus investments €-6.08 Billion) from operating cash flow of €7.94 Billion. Explore Telefonaktiebolaget LM Ericsson (publ) capital reinvestment ratio to see what proportion of operating cash flow is directed to capital expenditures.

Reinvestment Rate

0.86x
(Capex + Investments) / Operating CF

Total Reinvested

€6.86 Billion
Capex + Investments

Operating Cash Flow

€7.94 Billion
EUR

Capital Expenditures

€777.00 Million
EUR

Telefonaktiebolaget LM Ericsson (publ) Cash Flow Reinvestment Rate (2016–2024)

Historical reinvestment intensity for Telefonaktiebolaget LM Ericsson (publ) across 9 annual periods. Also explore Telefonaktiebolaget LM Ericsson (publ) assets under control for the complete picture of this company's asset base.

Annual Cash Flow Reinvestment Rate for Telefonaktiebolaget LM Ericsson (publ) (2016–2024)

Year-by-year capital reinvestment analysis for Telefonaktiebolaget LM Ericsson (publ). For live market cap and broader valuation context, see how much is Telefonaktiebolaget LM Ericsson (publ) worth.

Year Reinvestment Rate Total Reinvested (EUR) Operating CF Capex YoY Change
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
Cash Flow Reinvestment Rate = (ABS(Capex) + ABS(Investments)) / Operating Cash Flow