Enter a company's revenue split and balance sheet to see what share of its income is halal versus haram, run the three Shariah financial screens (debt, interest-bearing assets, receivables) under AAOIFI, Dow Jones or MSCI thresholds, and get the part of your dividend you need to purify.
The halal-to-haram ratio here is a revenue split: haram revenue divided by total revenue, with the rest counted as halal. The widely used business screen fails a company once that haram share goes above 5%.
The financial screens divide interest-bearing debt, cash plus interest-bearing securities, and accounts receivable by the same denominator. AAOIFI uses market capitalization with a 30% cap, the Dow Jones Islamic Market uses a 24-month average market cap with 33%, and MSCI uses total assets with 33.33%. The same company can pass under one standard and fail under another, which is why the standard is a choice here rather than a fixed rule.
Interest (riba) income, alcohol, gambling, tobacco, pork, adult entertainment, and conventional non-takaful insurance and banking. Weapons and a few other sectors are read differently by different scholars, and each screening body publishes its own activity list, so the edges vary.
Because the denominator and the caps differ. Market-cap screens move with the share price, so a stock can drift in and out of compliance as its market cap swings, while total-asset screens only move when the balance sheet does.
If a compliant company still earns a small share of impure income, the common ruling is to give away that same share of any dividend you receive, without expecting reward for it. This tool multiplies your dividend by the haram revenue ratio. It is separate from Zakat, which is due on your wealth.
No. These are the numeric screens that index providers and Shariah boards use as a first filter. A final ruling also weighs the company's contracts, subsidiaries, and how the business actually operates — follow your fund's Shariah board or a qualified scholar.
The income statement gives total revenue and usually a segment breakdown; the balance sheet gives total assets, debt, cash and short-term investments, and receivables. Market capitalization is the share price times shares outstanding.