Apr 1 • 📊 Stock Screening
One number tells you if any stock is halal (takes 60 seconds)
Most people think screening stocks for halal compliance is complicated. Too many rules, too many apps, too much conflicting advice. So they just avoid investing altogether.
But here's the thing — Islamic scholars at AAOIFI boiled it down to one core test. It takes about 60 seconds.
You take a company's total debt and divide it by its market cap. If that number stays below 33%, it passes the main screen. That's the same standard every major halal ETF uses — SPUS, HLAL, UMMA — they all run this exact check automatically.
Let me give you some real examples:
Apple — 18% debt ratio. Passes.Amazon — 41% debt ratio. Fails.Microsoft — 12% debt ratio. Passes.
Now, this is the primary screen. There are a few other ratios to check (interest income, receivables), but the debt test is the big one. If a stock fails this, you don't need to go further.
The point is — halal investing isn't guesswork. It's clear criteria applied consistently. Once you know what to look for, you can evaluate any stock in under a minute.
If you want the full screening checklist with every ratio and threshold, grab it at shop.barakabooks.org
What's been your biggest confusion about screening stocks? Drop it below and I'll break it down for you.
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One number tells you if any stock is halal (takes 60 seconds)
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