Telefonaktiebolaget L M Ericsson (BSP:E1RI34) Debt-to-Equity : 0.45 (As of Mar. 2024)

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What is Telefonaktiebolaget L M Ericsson Debt-to-Equity?

Telefonaktiebolaget L M Ericsson's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was R$5,140 Mil. Telefonaktiebolaget L M Ericsson's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was R$18,154 Mil. Telefonaktiebolaget L M Ericsson's Total Stockholders Equity for the quarter that ended in Mar. 2024 was R$52,201 Mil. Telefonaktiebolaget L M Ericsson's debt to equity for the quarter that ended in Mar. 2024 was 0.45.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's Debt-to-Equity or its related term are showing as below:

BSP:E1RI34' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.16 Med: 0.35 Max: 0.64
Current: 0.45

During the past 13 years, the highest Debt-to-Equity Ratio of Telefonaktiebolaget L M Ericsson was 0.64. The lowest was 0.16. And the median was 0.35.

BSP:E1RI34's Debt-to-Equity is ranked worse than
64.03% of 2196 companies
in the Hardware industry
Industry Median: 0.28 vs BSP:E1RI34: 0.45

Telefonaktiebolaget L M Ericsson Debt-to-Equity Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson's Debt-to-Equity can be seen below:

* 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.

* Premium members only.

Telefonaktiebolaget L M Ericsson Debt-to-Equity Chart

Telefonaktiebolaget L M Ericsson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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0.58

0.46

0.38

0.31

0.55

Telefonaktiebolaget L M Ericsson Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-Equity	Get a 7-Day Free Trial															0.34	0.32	0.44	0.55	0.45

Competitive Comparison of Telefonaktiebolaget L M Ericsson's Debt-to-Equity

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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's Debt-to-Equity Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Debt-to-Equity falls into.

Telefonaktiebolaget L M Ericsson Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Telefonaktiebolaget L M Ericsson's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(9500.958	+	16450.175)	/	47133.634
	=	0.55

Telefonaktiebolaget L M Ericsson's Debt to Equity Ratio for the quarter that ended in Mar. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(5139.889	+	18154.151)	/	52201.015
	=	0.45

Telefonaktiebolaget L M Ericsson (BSP:E1RI34) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Telefonaktiebolaget L M Ericsson Debt-to-Equity Related Terms

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Telefonaktiebolaget L M Ericsson (BSP:E1RI34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Telefonaktiebolaget L M Ericsson (BSP:E1RI34) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

ERIXF:USA ERIC:USA ERIC B:Sweden ERIC A:Sweden ERIC:Mexico 1ERICB:Italy ERICBs:UK 0O87:UK ERIBR:Finland ERCB:Germany ERIC:Argentina

Address

Torshamnsgatan 21, Kista, Stockholm, SWE, SE-164 83

Website

https://www.ericsson.com

Ericsson provides telecom equipment and services that are primarily used to build and facilitate mobile networks through operations in three segments: networks, cloud and software services, and enterprises. The firm's customers have historically been primarily wireless carriers, but the firm is making a push to cater more to other enterprises as well, both as they try to take advantage of 5G capabilities and on other "as-a-service" communications platforms. The company also licenses its patents to handset manufacturers so their devices are compatible with wireless networks.

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