Ericsson & Nokia: Who’s More Leveraged?

+15.43%
Upside
3.48
Market
4.02
Trefis
NOK: Nokia logo
NOK
Nokia

  • Nokia appears slightly less leveraged than Ericsson, which has its debt/equity ratio inline with the industry average
  • While even Ericsson’s position doesn’t look too bad, compared to Nokia, it relies more on debt to finance its growth
  • This is somewhat understandable given that Nokia is a cash rich company, while Ericsson’s position is in net debt mainly due to its huge pension liabilities.

Nokia leverage ratio

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Nokia
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