What is Telefonaktiebolaget L M Ericsson Days Inventory?
Telefonaktiebolaget L M EricssonERIXF -4.47%59 Days Inventory is 86.30 as of Mar. 2026, which is 12% above its 10-year median of 77.33. GuruFocus rates ERIXF with a GF Score™ of 59/100 and a GF Value™ of $7.19 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,413 Hardware companies, Telefonaktiebolaget L M Ericsson ranks better than 60.38% on this metric.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Telefonaktiebolaget L M Ericsson's Inventory Turnover for the
three
months ended in Mar. 2026 was 1.06.
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Telefonaktiebolaget L M Ericsson's Inventory-to-Revenue for the
three
months ended in Mar. 2026 was 0.50.
Telefonaktiebolaget L M Ericsson (OTCPK:ERIXF) Days Inventory Explanation
Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:
1. Inventory Turnover measures how fast the company turns over its inventory within a year.
Telefonaktiebolaget L M Ericsson's Inventory Turnover for the
three
months ended in Mar. 2026 is calculated as
2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Telefonaktiebolaget L M Ericsson's Inventory to Revenue for the
three
months ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.
Telefonaktiebolaget L M Ericsson Days Inventory Related Terms
Telefonaktiebolaget L M Ericsson Days Inventory Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Telefonaktiebolaget L M Ericsson Days Inventory Chart
ERIXF vs CSCO, CIEN, MSI: Days Inventory Comparison
For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telefonaktiebolaget L M Ericsson Days Inventory vs Hardware Industry
For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Days Inventory distribution charts can be found below:
* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Days Inventory falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Telefonaktiebolaget L M Ericsson (ERIXF) has a Days Inventory of 86.30 as of Mar. 2026. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. This is 12% above median its historical median of 77.33. Over the past decade, Telefonaktiebolaget L M Ericsson's Days Inventory has ranged from 66.26 to 93.42. According to the industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #956 out of 2413 companies in the Hardware industry, placing it in the top 39.6%.
Is Telefonaktiebolaget L M Ericsson's Days Inventory too high?
Telefonaktiebolaget L M Ericsson's current Days Inventory of 86.30 is 12% above median its 10-year median of 77.33. Over the past 10 years, this metric has ranged from a low of 66.26 to a high of 93.42. The Hardware industry median Days Inventory is 94.29. Telefonaktiebolaget L M Ericsson's value of 86.30 is 8.5% below this industry median. Based on the distribution chart, Telefonaktiebolaget L M Ericsson ranks #956 out of 2413 companies in the Hardware industry, which is above the industry midpoint. Overall, Telefonaktiebolaget L M Ericsson has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's Days Inventory compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #956 out of 2413 companies for Days Inventory. This puts Telefonaktiebolaget L M Ericsson in the upper half of its industry. The industry median Days Inventory is 94.29. Telefonaktiebolaget L M Ericsson's value of 86.30 is 8.5% below this benchmark. Historically, Telefonaktiebolaget L M Ericsson's own Days Inventory has ranged from 66.26 to 93.42 over the past decade. While the company's 10-year median is 77.33 vs. the industry median of 94.29, Telefonaktiebolaget L M Ericsson has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Days Inventory for a Hardware company?
The median Days Inventory among Hardware companies is 94.29, based on 2,413 companies in the industry. Companies in the top quartile (top 25%) have a Days Inventory significantly above this median, while those in the bottom quartile fall well below. However, Days Inventory should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telefonaktiebolaget L M Ericsson's current Days Inventory of 86.30 is 8.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Days Inventory mean?
A high Days Inventory can signal that a stock is expensive relative to its fundamentals. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. For the Hardware industry, the median Days Inventory is 94.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonaktiebolaget L M Ericsson's current Days Inventory is 86.30, which is 12% above median its own 10-year median of 77.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonaktiebolaget L M Ericsson stock overvalued right now?
Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson (ERIXF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.19, compared to a current price of $10.91 — trading 51.7% above its estimated fair value. The current Days Inventory is 86.30, which is 12% above median its 10-year median of 77.33 and 8.5% below the Hardware industry median of 94.29. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Days Inventory calculated?
Days Inventory is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current Days Inventory is 86.30 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telefonaktiebolaget L M Ericsson (ERIXF) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson stock appears to be overvalued.
The current stock price of $10.91 is trading 51.7% above its estimated GF Value™ of $7.19.
GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.
Key valuation signals for ERIXF:
Days Inventory: 86.30 (12% above median its 10-year median of 77.33)
GF Value™: $7.19 vs. price of $10.91 (51.7% above fair value)
Industry Position: 8.5% below the Hardware median (#956 of 2413)
No single metric tells the full story. See the ERIXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonaktiebolaget L M Ericsson Business Description
Ericsson is a networking equipment and software provider, primarily selling mobile networking equipment and services to wireless service providers. Ericsson operates in three segments: networks, cloud software and services, and enterprise. While large wireless carriers are its largest customers, Ericsson has expanded its offerings for large enterprises. These products and services include private 5G networking, contact centers as a service, and application performance interfaces. Ericsson aims to combine its 5G network expertise with cloud-native, as-a-service platforms offering a more comprehensive hardware and software package. Ericsson also monetizes its research and development investments by licensing patents to handset manufacturers.
59GF Score
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