Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Cash-to-Debt

: 0.91 (As of Mar. 2024)

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Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Telefonaktiebolaget L M Ericsson's cash to debt ratio for the quarter that ended in Mar. 2024 was 0.91.

If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Telefonaktiebolaget L M Ericsson couldn't pay off its debt using the cash in hand for the quarter that ended in Mar. 2024.

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

ERIC' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.89 Med: 1.33 Max: 3.08
Current: 0.91

During the past 13 years, Telefonaktiebolaget L M Ericsson's highest Cash to Debt Ratio was 3.08. The lowest was 0.89. And the median was 1.33.

ERIC's Cash-to-Debt is ranked worse than
59.39% of 2470 companies
in the Hardware industry
Industry Median: 1.37 vs ERIC: 0.91

Telefonaktiebolaget L M Ericsson Cash-to-Debt Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson's Cash-to-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.

Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Telefonaktiebolaget L M Ericsson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash-to-Debt

1.12

1.33

1.69

1.23

0.93

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
Cash-to-Debt																1.20	0.89	1.01	0.93	0.91

Competitive Comparison

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

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

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

Telefonaktiebolaget L M Ericsson Cash-to-Debt Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities to its debt. The debt includes the Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation. This ratio measures the financial strength of a company. This ratio is updated quarterly.

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

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	4907.971	/	(1939.05	+	3357.316)
	=	0.93

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

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	4275.451	/	(1032.148	+	3645.558)
	=	0.91

Telefonaktiebolaget L M Ericsson (NAS:ERIC) Cash-to-Debt Explanation

If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.

Telefonaktiebolaget L M Ericsson Cash-to-Debt Related Terms

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

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Telefonaktiebolaget L M Ericsson (NAS:ERIC) » Definitions » Cash-to-Debt

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.