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
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.
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.
