Telefonaktiebolaget LM Ericsson (publ) (ERCA) — Financial Flexibility Index

Latest as of June 2026: 0.02x

Telefonaktiebolaget LM Ericsson (publ) (ERCA) has a Financial Flexibility Index of 0.02x as of June 2026. Free cash flow of €2.95 Billion (operating CF €1.93 Billion minus capex €1.02 Billion) represents 0% of total liabilities (€183.13 Billion). Check ERCA capex plus investments ratio to assess the company's total reinvestment commitment from operating cash flow.

Financial Flexibility Index

0.02x
Free Cash Flow / Total Liabilities

Free Cash Flow

€2.95 Billion
Operating CF − Capex

Total Liabilities

€183.13 Billion
EUR

Capital Expenditures

€1.02 Billion
EUR

Telefonaktiebolaget LM Ericsson (publ) Financial Flexibility Index (2016–2025)

Historical Financial Flexibility Index trend 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 Financial Flexibility Index for Telefonaktiebolaget LM Ericsson (publ) (2016–2025)

Year-by-year free cash flow to debt coverage for Telefonaktiebolaget LM Ericsson (publ). Explore ERCA debt coverage from operations to assess how comfortably operating cash covers total debt obligations.

Year Flexibility Index Free Cash Flow (EUR) Operating CF Total Liabilities YoY Change
2025 0.22x €36.72 Billion €32.95 Billion €168.96 Billion ▼ -13.2%
2024 0.25x €49.90 Billion €46.26 Billion €199.39 Billion ▲ +162.8%
2023 0.10x €19.01 Billion €12.59 Billion €199.63 Billion ▼ -41.7%
2022 0.16x €35.29 Billion €30.86 Billion €216.23 Billion ▼ -24.1%
2021 0.21x €42.67 Billion €39.06 Billion €198.51 Billion ▲ +19.8%
2020 0.18x €33.43 Billion €28.93 Billion €186.35 Billion ▲ +59.2%
2019 0.11x €21.91 Billion €16.87 Billion €194.50 Billion ▲ +53.1%
2018 0.07x €13.32 Billion €9.34 Billion €180.99 Billion ▼ -12.5%
2017 0.08x €13.48 Billion €9.60 Billion €160.37 Billion ▼ -51.2%
2016 0.17x €24.62 Billion €14.01 Billion €142.85 Billion
Financial Flexibility Index = (Operating CF − Capex) / Total Liabilities = Free Cash Flow / Total Liabilities