ERIXF (Telefonaktiebolaget L M Ericsson) Effective Interest Rate on Debt %: 5.97% (As of Mar. 2026)


ERIXF Telefonaktiebolaget L M Ericsson ERIXF
59 GF Score
Price $10.91
GF Value $7.20
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Telefonaktiebolaget L M Ericsson Effective Interest Rate on Debt %?

Telefonaktiebolaget L M Ericsson ERIXF -4.47% 59 Effective Interest Rate on Debt % is 5.97% as of Mar. 2026. GuruFocus rates ERIXF with a GF Score™ of 59/100 and a GF Value™ of $7.20 (Significantly Overvalued). The stock has 3 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Telefonaktiebolaget L M Ericsson's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $255 Mil. Telefonaktiebolaget L M Ericsson's average total debt for the quarter that ended in Mar. 2026 was $4,275 Mil. Therefore, Telefonaktiebolaget L M Ericsson's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 5.97%.


Telefonaktiebolaget L M Ericsson  (OTCPK:ERIXF) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Telefonaktiebolaget L M Ericsson Effective Interest Rate on Debt % Related Terms


Telefonaktiebolaget L M Ericsson Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Telefonaktiebolaget L M Ericsson's Effective Interest Rate on Debt % 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.

Telefonaktiebolaget L M Ericsson Effective Interest Rate on Debt % Chart

Telefonaktiebolaget L M Ericsson Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.89 4.03 6.79 6.85 6.90

Telefonaktiebolaget L M Ericsson Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.63 8.86 6.77 2.40 5.97

ERIXF vs CSCO, CIEN, MSI: Effective Interest Rate on Debt % Comparison

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Hardware Industry

For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Effective Interest Rate on Debt % falls into.


ERIXF
59GF Score
Telefonaktiebolaget L M Ericsson ERIXF
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Telefonaktiebolaget L M Ericsson Effective Interest Rate on Debt % Calculation

Telefonaktiebolaget L M Ericsson's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -292.57/( (4145.289+4332.49)/ 2 )
=-1  *  -292.57/4238.8895
=6.90 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3392.535 + 752.754
=4145.289

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3759.294 + 573.196
=4332.49

Telefonaktiebolaget L M Ericsson's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -255.012/( (4332.49+4216.932)/ 2 )
=-1  *  -255.012/4274.711
=5.97 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3759.294 + 573.196
=4332.49

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2967.415 + 1249.517
=4216.932

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 5.97% mean?
Telefonaktiebolaget L M Ericsson (ERIXF) has a Effective Interest Rate on Debt % of 5.97% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Telefonaktiebolaget L M Ericsson and its competitors.
Is Telefonaktiebolaget L M Ericsson's Effective Interest Rate on Debt % too high?
Telefonaktiebolaget L M Ericsson's current Effective Interest Rate on Debt % is 5.97%. 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 Effective Interest Rate on Debt % compare to CSCO and CIEN?
Telefonaktiebolaget L M Ericsson's Effective Interest Rate on Debt % of 5.97% can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Hardware company?
A good Effective Interest Rate on Debt % depends on the Hardware industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. Telefonaktiebolaget L M Ericsson's current Effective Interest Rate on Debt % is 5.97%. 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 $7.20, compared to a current price of $10.91 — trading 51.5% above its estimated fair value. The current Effective Interest Rate on Debt % is 5.97%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current Effective Interest Rate on Debt % is 5.97% 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 51.5% above its estimated GF Value™ of $7.20. GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.

Key valuation signals for ERIXF:

  • Effective Interest Rate on Debt %: 5.97%
  • GF Value™: $7.20 vs. price of $10.91 (51.5% above fair value)
  • GF Score™: 59/100 with 3 warning signs

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

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

Get the complete analysis for ERIXF

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$10.91
Price
$7.20
GF Value