Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) FCF Yield % : 6.96 (As of Apr. 27, 2024)

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What is Telefonaktiebolaget L M Ericsson FCF Yield %?

FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.

As of today, Telefonaktiebolaget L M Ericsson's Trailing 12-Month Free Cash Flow is $1,311 Mil, and Market Cap is $17,260 Mil. Therefore, Telefonaktiebolaget L M Ericsson's FCF Yield % for today is 6.96%.

The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's FCF Yield % or its related term are showing as below:

ERIC' s FCF Yield % Range Over the Past 10 Years
Min: -2.19 Med: 4.49 Max: 14.03
Current: 6.96

During the past 13 years, the highest FCF Yield % of Telefonaktiebolaget L M Ericsson was 14.03%. The lowest was -2.19%. And the median was 4.49%.

ERIC's FCF Yield % is ranked better than
75.89% of 2472 companies
in the Hardware industry
Industry Median: 0.86 vs ERIC: 6.96

Telefonaktiebolaget L M Ericsson's FCF Margin % for the quarter that ended in Mar. 2024 was 7.98%.

Telefonaktiebolaget L M Ericsson FCF Yield % Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson's FCF Yield % 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.

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Telefonaktiebolaget L M Ericsson FCF Yield % Chart

Telefonaktiebolaget L M Ericsson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

FCF Yield %

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3.72

7.10

10.47

12.22

0.79

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
FCF Yield %	Get a 7-Day Free Trial															-14.41	-8.70	0.22	24.56	8.90

Competitive Comparison of Telefonaktiebolaget L M Ericsson's FCF Yield %

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's FCF Yield % distribution charts can be found below:

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's FCF Yield % falls into.

Telefonaktiebolaget L M Ericsson FCF Yield % Calculation

FCF Yield % is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.

Telefonaktiebolaget L M Ericsson's FCF Yield % for the fiscal year that ended in Dec. 2023 is calculated as

FCF Yield %	=	Free Cash Flow	/	Market Cap
	=	166.413	/	20979.882
	=	0.79%

Telefonaktiebolaget L M Ericsson's annualized FCF Yield % for the quarter that ended in Mar. 2024 is calculated as

FCF Yield %	=	Free Cash Flow	*	Annualized Factor	/	Market Cap
	=	408.69	*	4	/	18359.1547
	=	8.90%

Telefonaktiebolaget L M Ericsson FCF Yield % Explanation

Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.

Telefonaktiebolaget L M Ericsson FCF Yield % Related Terms

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Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Business Description

Industry

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Comparable Companies

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.