Conventional and advanced exergy analyses are applied for a double absorption heat transformer system utilizing low-grade industrial waste heat for water purification. The conventional method provides information about the location and magnitude of inefficiencies and does not consider any interaction among components regarding the irreversibility occurring in them. The advanced exergy technique however, exposes the real origins of irreversibilities and latent potential for enhancement of each system component, along with reflecting mutual interaction between components. The simulation of the cycle is carried out with engineering equation solver software. The results show that the overall improvement potential of the cycle is only 16%. Also, the mutual interdependency between components is found to be weak as 97% of the total exergy destruction appeared as endogenous. Furthermore, considering endogenous avoidable exergy destruction, the improvement strategy of components obtained by advanced exergy method is disparate from conventional one. Results of the advanced exergy suggest this order: condenser, absorber, evaporator, absorber/evaporator assembly, generator assembly, economizer 1, and economizer 2. Additionally, a parametric investigation is performed to assess the sensitivity of splitting exergy destruction to the variation of heat source temperature for highlighting improvement opportunities. The results indicate that the condenser yields the highest amount of avoidable endogenous exergy destruction in the entire studied temperature range.