Margins

Nokia's profitability margins have been impacted by a combination of factors, with cost of sales being the most significant contributor to the decline. The company's inability to effectively manage its supply chain and mitigate the effects of inflation have resulted in increased costs, which have had a ripple effect on its operating expenses and ultimately its bottom line. Furthermore, Nokia's efforts to invest in research and development and drive growth have also led to increased expenses, further eroding its profitability margins.

Solvency

The Equity Ratio for Nokia in Q2 2026 is 56.9%. It is expected to increase to 62.0% by Q4 2027 (e), indicating a potential growth trend. The five-year average Equity Ratio is 58.3%.

Gearing

In Q2 2026, Nokia's gearing is expected to be around -13.1%, indicating a significant level of debt. Looking ahead to Q4 2027 (e), the gearing is forecasted to decrease further to -16.2%, suggesting a potential reduction in debt levels. The five-year average gearing stands at -18.7%.

Return on Equity and Assets

Nokia's ROE in Q2 2026 is 3.5%, indicating a relatively stable financial performance during this period. Looking ahead, the company's ROE is expected to increase to 4.8% by Q4 2027 (e), suggesting a potential improvement in its financial health over the next few years. The five-year average ROE stands at 4.7%, indicating a consistent level of profitability for the company.

Nokia's ROA in Q2 2026 is 2.0%, indicating a relatively stable financial performance. Looking ahead, the ROA is expected to increase to 3.0% by Q4 2027 (e), suggesting a potential improvement in Nokia's financial efficiency. The five-year average ROA stands at 2.8%, providing a benchmark for Nokia's historical financial performance.

Asset Turnover Ratio

Asset Turnover Ratio is calculated as revenue / total assets.