Halal stock screener
The ratios of five methods, calculated in front of you from the company’s figures. Auto-fill for US-listed companies; manual entry for any stock exchange.
Result by method
Share of income to purify:
Calculate the purification of my dividendsHow to read the result
Each method compares balance-sheet items with a base (market capitalisation or total assets), and non-compliant income with revenue. A line passes when the ratio stays below the threshold, shown as a mark on the bar.
The methods do not always agree: a company can pass AAOIFI and fail MSCI, depending on whether it is measured by its stock-market value or by its assets. The AAOIFI method is the one scholars cite most; the others are those of the Islamic stock indices.
The methods and their thresholds
Thresholds published by each standard. The base is the denominator of the debt and cash ratios.
| Method | Base | Interest-bearing debt | Cash and interest-bearing investments | Receivables | Non-compliant income |
|---|---|---|---|---|---|
| AAOIFI (standard 21) | Market capitalisation | < 30 % | < 30 % | — | < 5 % |
| Dow Jones Islamic Market | Average market cap (24 months) | < 33 % | < 33 % | < 33 % | < 5 % |
| S&P Shariah | Average market cap (36 months) | < 33 % | < 33 % | receivables + cash < 49% | < 5 % |
| MSCI Islamic | Total assets | < 33.33 % | < 33.33 % | receivables + cash < 33.33% | < 5 % |
| FTSE Shariah | Total assets | < 33.333 % | < 33.333 % | receivables + cash < 50% | < 5 % |
| Borsa İstanbul Participation | Market capitalisation | < 30 % | < 30 % | — | < 5 % |
Index providers sometimes revise their rules: check the thresholds against their latest documents.
Why thresholds?
A share is a part-ownership of a company. A company whose main business is unlawful is excluded by all. The difficulty lies with lawful companies that borrow or hold cash at interest, which is the case of almost every listed company.
The International Islamic Fiqh Academy states that the principle for these companies is prohibition (resolution 63 (1/7), 1992) and postponed its decision on them (resolutions 77 (8/8), 1993, and 87 (4/9), 1995). AAOIFI (standard 21) and the Shariah boards of Islamic banks and stock indices accept them within thresholds, provided the share of non-compliant income is purified.
Thresholds do not make interest lawful: they measure a tolerated share that must be purified. For other scholars, prohibition remains the rule and these shares should be avoided.
Limits of the calculation
- The result depends on the figures: check them in the latest annual or quarterly report.
- Auto-fill uses the items the company reports; index providers may classify some debts or investments differently.
- Non-compliant income is found in the notes to the report; auto-fill only uses interest income.
- Companies change: a result holds for the accounts date shown.