Telefonaktiebolaget LM Ericsson (publ) (ERCA) - Net Assets
Based on the latest financial reports, Telefonaktiebolaget LM Ericsson (publ) (ERCA) has net assets worth €102.49 Billion EUR (≈ $119.83 Billion USD) as of September 2025. Net assets (also known as shareholders' equity or book value) represent the difference between a company's total assets (€282.48 Billion ≈ $330.24 Billion USD) and total liabilities (€179.98 Billion ≈ $210.42 Billion USD). This figure indicates the residual interest in the assets after deducting liabilities, essentially showing what would remain for shareholders if all assets were liquidated and all debts paid off. Check how tangible is Telefonaktiebolaget LM Ericsson (publ)'s equity to evaluate the tangible quality of the company's equity base.
Key Net Assets Metrics
| Metric | Value |
|---|---|
| Current Net Assets | €102.49 Billion |
| % of Total Assets | 36.28% |
| Annual Growth Rate | -5.03% |
| 5-Year Change | 9.16% |
| 10-Year Change | N/A |
| Growth Volatility | 19.26 |
Telefonaktiebolaget LM Ericsson (publ) - Net Assets Trend (2016–2024)
This chart illustrates how Telefonaktiebolaget LM Ericsson (publ)'s net assets have evolved over time, based on quarterly financial data. See ERCA days of operational coverage to measure how many days the company can operate on defensive assets alone.
Annual Net Assets for Telefonaktiebolaget LM Ericsson (publ) (2016–2024)
The table below shows the annual net assets of Telefonaktiebolaget LM Ericsson (publ) from 2016 to 2024. For live valuation and market cap data, see ERCA company net worth.
| Year | Net Assets | Change |
|---|---|---|
| 2024-12-31 | €92.98 Billion ≈ $108.71 Billion |
-4.54% |
| 2023-12-31 | €97.41 Billion ≈ $113.88 Billion |
-26.93% |
| 2022-12-31 | €133.30 Billion ≈ $155.85 Billion |
+24.47% |
| 2021-12-31 | €107.10 Billion ≈ $125.21 Billion |
+25.74% |
| 2020-12-31 | €85.18 Billion ≈ $99.58 Billion |
+4.03% |
| 2019-12-31 | €81.88 Billion ≈ $95.72 Billion |
-6.71% |
| 2018-12-31 | €87.77 Billion ≈ $102.61 Billion |
-12.38% |
| 2017-12-31 | €100.18 Billion ≈ $117.12 Billion |
-28.70% |
| 2016-12-31 | €140.49 Billion ≈ $164.25 Billion |
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Equity Component Analysis
This analysis shows how different components contribute to Telefonaktiebolaget LM Ericsson (publ)'s total equity over time. Equity components include common stock, retained earnings, additional paid-in capital, and other elements.
Equity Composition Insights
- Retained earnings have decreased by 54.6% over the analyzed period, potentially due to dividend distributions or operating losses.
Current Equity Component Breakdown (December 2024)
| Component | Amount | Percentage |
|---|---|---|
| Retained Earnings | €42.30 Billion | 44.86% |
| Other Components | €51.99 Billion | 55.14% |
| Total Equity | €94.28 Billion | 100.00% |
Telefonaktiebolaget LM Ericsson (publ) Competitors by Market Cap
The table below lists competitors of Telefonaktiebolaget LM Ericsson (publ) ranked by their market capitalization.
| Company | Market Cap |
|---|---|
|
Lens Technology Co Ltd
SHE:300433
|
$32.37 Billion |
|
OTP Bank Nyrt
BUD:OTP
|
$32.37 Billion |
|
Gree Electric Appliances Inc of Zhuhai
SHE:000651
|
$32.38 Billion |
|
SANDVIK AB SP.ADR
F:SVK
|
$32.51 Billion |
|
Kenvue Inc.
NYSE:KVUE
|
$32.24 Billion |
|
PTT Public Company Limited
BK:PTT
|
$32.22 Billion |
|
Orix Corp Ads
F:OIXA
|
$32.07 Billion |
|
Koninklijke Ahold Delhaize NV
AS:AD
|
$31.97 Billion |
Equity Growth Attribution
This analysis shows how different factors contributed to changes in Telefonaktiebolaget LM Ericsson (publ)'s equity between the two most recent reporting periods.
Equity Growth Insights
- From 2023 to 2024, total equity changed from 98,673,000,000 to 94,284,000,000, a change of -4,389,000,000 (-4.4%).
- Net income of 20,000,000 contributed positively to equity growth.
- Dividend payments of 9,233,000,000 reduced retained earnings.
- Other factors increased equity by 4,824,000,000.
Equity Change Factors (2023 to 2024)
| Factor | Impact | Contribution |
|---|---|---|
| Net Income | €20.00 Million | +0.02% |
| Dividends Paid | €9.23 Billion | -9.79% |
| Other Changes | €4.82 Billion | +5.12% |
| Total Change | €- | -4.45% |
Book Value vs Market Value Analysis
This analysis compares Telefonaktiebolaget LM Ericsson (publ)'s book value (net assets) with its market value over time. The relationship between these values can provide insights into investor sentiment and company valuation.
Valuation Insights
- Current price-to-book ratio: 0.41x
- The company is trading below its book value, potentially indicating the market believes the assets are overvalued on the balance sheet or anticipates future losses.
Historical Price-to-Book Ratios
| Date | Book Value per Share | Market Price | P/B Ratio |
|---|---|---|---|
| 2017-12-31 | €29.85 | €11.60 | x |
| 2018-12-31 | €26.09 | €11.60 | x |
| 2019-12-31 | €24.91 | €11.60 | x |
| 2020-12-31 | €26.04 | €11.60 | x |
| 2021-12-31 | €32.63 | €11.60 | x |
| 2022-12-31 | €40.48 | €11.60 | x |
| 2023-12-31 | €29.63 | €11.60 | x |
| 2024-12-31 | €28.29 | €11.60 | x |
Capital Efficiency Dashboard
This dashboard shows how efficiently Telefonaktiebolaget LM Ericsson (publ) utilizes its equity to generate returns, including Return on Equity (ROE) and its components based on the DuPont analysis framework.
Capital Efficiency Insights
- Current Return on Equity (ROE): 0.02%
- The company may be facing challenges in efficiently utilizing shareholder equity.
- DuPont Analysis Breakdown:
- • Net Profit Margin: 0.01%
- • Asset Turnover: 0.85x
- • Equity Multiplier: 3.10x
- Recent ROE (0.02%) is above the historical average (-1.20%), indicating improving capital efficiency.
Historical Capital Efficiency Metrics
| Year | Return on Equity | Net Profit Margin | Asset Turnover | Equity Multiplier | Economic Value Added |
|---|---|---|---|---|---|
| 2016 | 1.23% | 0.77% | 0.79x | 2.03x | €-12.27 Billion |
| 2017 | -35.37% | -17.49% | 0.77x | 2.62x | €-45.16 Billion |
| 2018 | -7.51% | -3.10% | 0.78x | 3.09x | €-15.23 Billion |
| 2019 | 2.69% | 0.98% | 0.82x | 3.35x | €-6.03 Billion |
| 2020 | 20.17% | 7.52% | 0.86x | 3.13x | €8.82 Billion |
| 2021 | 20.86% | 9.77% | 0.76x | 2.81x | €11.82 Billion |
| 2022 | 13.89% | 6.90% | 0.78x | 2.59x | €5.24 Billion |
| 2023 | -26.80% | -10.04% | 0.89x | 3.01x | €-36.31 Billion |
| 2024 | 0.02% | 0.01% | 0.85x | 3.10x | €-9.41 Billion |
Industry Comparison
This section compares Telefonaktiebolaget LM Ericsson (publ)'s net assets metrics with peer companies in the Communication Equipment industry.
Industry Context
- Industry: Communication Equipment
- Average net assets among peers: $11,318,290,726
- Average return on equity (ROE) among peers: 11.53%
Peer Company Comparison
| Company | Net Assets | Return on Equity | Debt-to-Equity | Market Cap |
|---|---|---|---|---|
| Telefonaktiebolaget LM Ericsson (publ) (ERCA) | €102.49 Billion | 1.23% | 1.76x | $32.28 Billion |
| YANGTZE OPT.FIB.AND CAB.H (1YO) | $14.54 Billion | 8.03% | 0.94x | $14.29 Billion |
| NOVRA TECHNOLOGIES INC. (7CV) | $-2.62 Million | 0.00% | 0.00x | $2.11 Million |
| AAC TECHNOLOG.HLDG.ADR/ (A2X) | $22.37 Billion | 3.31% | 0.74x | $4.53 Billion |
| AAC Technologies Holdings Inc (A2XN) | $19.36 Billion | 11.48% | 0.77x | $4.56 Billion |
| Adtran Networks SE (ADV) | $177.11 Million | 4.73% | 0.83x | $1.19 Billion |
| CeoTronics AG (CEK) | $10.92 Million | -6.60% | 0.60x | $90.01 Million |
| UET United Electronic Technology AG (CFC) | $11.95 Million | 30.70% | 1.29x | $8.73 Million |
| Funkwerk AG (FEW) | $17.78 Million | 42.08% | 1.84x | $249.85 Million |
| ZTE Corporation (FZM) | $45.38 Billion | 10.07% | 2.17x | $2.49 Billion |
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. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware and software solutions, and related service offerings. This segment also provides radio… Read more