A Closer Look At Focus Minerals Limited's (ASX:FML) Uninspiring ROE
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 01 2025
0mins
Should l Buy ?
Source: Yahoo Finance
Understanding Return on Equity (ROE): ROE measures a company's profitability relative to shareholder equity, with Focus Minerals showing a low ROE of 3.1% compared to the industry average of 11%, indicating potential concerns about its financial performance.
Impact of Debt on ROE: Focus Minerals has a high debt-to-equity ratio of 1.63, which, combined with its low ROE, raises caution for investors regarding the company's ability to sustain performance if borrowing conditions change.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
