ERIC

Ericsson
D

ERIC

Arincen68/100B

Ericsson return on equity (ROE)

Ericsson's return on equity is 17.45%: net income of 19.28B SEK over the last twelve months on shareholders' equity of 110.48B SEK.

Today
17.45%
Average, 5 years
6.55%
Low, 5 years
-43.34%
High, 5 years
25.32%

ROE (return on equity) = net income (last 12 months) ÷ shareholders' equity = 19.28B ÷ 110.48B = 17.45%

ROE (return on equity)
Net income
Shareholders' equity

Each quarter's net income over its last four quarters, over the shareholders' equity at the quarter end.

Why is Ericsson's return on equity so high?

Net margin
12.0%
profit on each dollar of sales
Asset turnover
0.80×
sales on each dollar of assets
Equity multiplier
2.55×
assets on each dollar of equity
Return on equity
24.4%
FY2025
  • FY202512.0% × 0.80 × 2.55 = 24.4%
  • FY20240.0% × 0.87 × 3.16 = 0.0%
  • FY2023-10.0% × 0.81 × 3.14 = -25.4%
  • FY20226.9% × 0.79 × 2.63 = 14.3%
  • FY20219.8% × 0.80 × 2.83 = 22.0%

The DuPont breakdown, on each year-end's assets and equity, as the return on equity elsewhere on this page. A high equity multiplier means a small equity base: debt, or buybacks that return the equity to shareholders, lift the return on what is left.

ROE (return on equity) by year and by quarter

Fiscal yearPeriod endingROE (return on equity)Net incomeShareholders' equity
Today17.45%19.28B110.48B
FY202531 Dec 202524.40%26.72B109.54B
FY202431 Dec 20240.02%20.93M94.40B
FY202331 Dec 2023-25.44%-25.08B98.59B
FY202231 Dec 202214.30%18.91B132.25B
FY202131 Dec 202122.00%23.89B108.57B
FY202031 Dec 202018.00%15.57B86.52B
FY201931 Dec 20192.66%2.13B80.09B
FY201831 Dec 2018-7.65%-6.75B88.27B
FY201731 Dec 2017-32.21%-31.90B99.06B
FY201631 Dec 20161.30%1.83B140.58B
FY201531 Dec 20159.24%13.51B146.16B
FY201431 Dec 20149.14%11.87B129.90B
FY201331 Dec 20138.44%11.97B141.79B
FY201231 Dec 20124.05%5.60B138.13B
FY201131 Dec 20119.00%12.87B143.02B
FY201031 Dec 20107.23%10.49B145.11B
FY200931 Dec 20092.45%3.43B139.98B
FY200831 Dec 20088.39%11.81B140.82B
FY200731 Dec 200715.57%20.92B134.35B
FY200631 Dec 200620.28%25.00B123.25B
FY200531 Dec 200525.46%25.85B101.54B
FY200431 Dec 200419.72%15.81B80.19B
FY200331 Dec 2003-17.93%-10.83B60.43B
FY200231 Dec 2002-25.83%-19.05B73.76B
FY200131 Dec 2001-31.01%-21.26B68.56B
FY200031 Dec 200022.92%21.17B92.35B
FY199931 Dec 199917.54%12.12B69.10B
FY199831 Dec 199820.66%13.05B63.16B
FY199731 Dec 199722.70%12.00B52.89B
FY199631 Dec 199617.57%7.10B40.43B
FY199531 Dec 199515.87%5.39B33.95B
FY199431 Dec 199416.95%3.94B23.28B
FY199331 Dec 199313.31%2.84B21.31B
FY199231 Dec 19922.75%478.64M17.42B
FY199131 Dec 19915.28%892.16M16.89B
FY199031 Dec 199020.59%3.43B16.67B
FY198931 Dec 198916.71%1.83B10.95B
FY198831 Dec 198815.22%1.32B8.65B
FY198731 Dec 19879.84%737.71M7.50B
FY198631 Dec 19867.72%565.02M7.32B

Figures in SEK. A quarter's revenue, net income and dividends are those of its last four quarters.

See also:P/E ratio,Market cap,P/S ratio,Debt to equity,Current ratio,All ratios

Common questions about Ericsson's ROE

Source: Financial Modeling Prep

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