Metodologi
Every other faith screener tells you a stock failed and never explains why. We show you the inputs, the ratios, the thresholds, and the source filings. Here is the full breakdown.
Sumber data
For US-listed companies we pull financial statements directly from the SEC EDGAR XBRL filings. Total assets, interest-bearing debt, cash and equivalents, available-for-sale securities, held-to-maturity securities, accounts receivable, total revenue, interest income, dividend income, and shares outstanding all come from the most recent 10-K or 10-Q.
For international stocks, we use yfinance balance-sheet and income-statement endpoints, validated against Yahoo Finance fundamentals. Where international filings differ from SEC standards, we map line items to their nearest US-GAAP equivalent and document the mapping in the company file.
Market capitalization is calculated three ways: trailing (most recent close × shares outstanding), 24-month trailing average, and 36-month trailing average. Different Shariah methodologies require different denominators, so we compute all three and select per framework.
All foreign-currency values are normalized to USD using live FX rates pulled from Yahoo Finance every 4 hours. The conversion rate used appears at the bottom of every screening report.
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The most widely cited Shariah methodology globally. Uses trailing market cap as the denominator. Three financial ratios must each fall below 30%, and non-compliant income must be below 5% of total revenue.
- • Interest-bearing debt / Market cap < 30%
- • Cash and interest-bearing securities / Market cap < 30%
- • Accounts receivable / Market cap < 30%
- • Non-permissible income / Total revenue < 5%
Uses a 24-month trailing average market cap to smooth out short-term volatility. Slightly more permissive thresholds than AAOIFI. Used by major Islamic ETFs including HLAL.
- • Interest-bearing debt / 24-mo avg market cap < 33%
- • Cash and interest-bearing securities / 24-mo avg market cap < 33%
- • Accounts receivable / 24-mo avg market cap < 33%
- • Non-permissible income / Total revenue < 5%
Uses an even longer 36-month trailing average market cap. Receivables are allowed up to 49% under this methodology, the most generous of all the Shariah standards on this metric.
- • Interest-bearing debt / 36-mo avg market cap < 33%
- • Cash and interest-bearing securities / 36-mo avg market cap < 33%
- • Accounts receivable / 36-mo avg market cap < 49%
- • Non-permissible income / Total revenue < 5%
Switches the denominator from market cap to total assets. This is a meaningful change because asset-heavy companies like manufacturers and brand-rich companies like Nike often pass market-cap-based screens but fail asset-based ones. Threshold is 33.33% across the board.
- • Interest-bearing debt / Total assets < 33.33%
- • Cash and interest-bearing securities / Total assets < 33.33%
- • Accounts receivable / Total assets < 50%
- • Non-permissible income / Total revenue < 5%
Also uses total assets as the denominator. Slightly stricter on receivables than FTSE Yasaar. Used by the iShares MSCI World Islamic UCITS ETF.
- • Interest-bearing debt / Total assets < 33.33%
- • Cash and interest-bearing securities / Total assets < 33.33%
- • Accounts receivable / Total assets < 33.33%
- • Non-permissible income / Total revenue < 5%
Christian framework that excludes companies with material involvement in 13 categories: abortion, adult entertainment, alcohol, anti-family entertainment, anti-religious causes, cannabis, gambling, human rights violations, LGBTQ advocacy funding, predatory lending, pornography, tobacco, and weapons of mass destruction. Material involvement is typically measured at 5% of revenue or operating profit.
Catholic framework structured around five pillars: protecting human life, promoting human dignity, reducing arms, pursuing economic justice, and protecting the environment. Updated in 2021. Used by Ave Maria Mutual Funds, Knights of Columbus Asset Management, and most Catholic diocesan investment offices.
Jewish framework drawing from the Bais HaVaad Halacha Center responsa. Mandatory exclusions cover publicly immoral activities and direct Shabbat violations. Praiseworthy avoidances cover Ribbis (interest-based earnings) and Lifnei Iveir (placing a stumbling block before the blind, interpreted as enabling sinful behavior).
LDS framework based on Doctrine and Covenants Section 89 plus Ensign Peak Advisors public screens. Excludes alcohol, tobacco, coffee, tea, cannabis, gambling, pornography, and R-rated entertainment production.
How verdicts are computed
For each framework we run two checks: a business activity screen (does the company derive material revenue from prohibited industries?) and a financial ratio screen (do the relevant balance-sheet and income-statement ratios fall within the framework thresholds?). A stock receives a Compliant verdict only if it passes both screens. Failure of either screen produces a Non-Compliant verdict.
Where data is missing or filings are stale, we return Insufficient Data rather than guess. We do not extrapolate.
For Shariah-compliant stocks with non-zero non-permissible income, we calculate a purification per share value. Multiply this by your share count and donate that amount to charity to satisfy the purification requirement under each methodology.
When verdicts disagree
Same stock, different methodologies, different verdicts. This is normal and expected. Apple passes AAOIFI and DJIM (which use market cap) but fails FTSE Yasaar and MSCI Islamic (which use total assets) because Apple has a much larger market cap than asset base. We show you all 9 verdicts side by side so you can pick the methodology that matches your scholar, your fund, or your community.
What we are not
We are not an independent Shariah board. We are not certifying any stock as Halal under any specific scholar. We compute the published frameworks against the published filings and show you the math. If your community follows a specific scholar or fund, use FaithScreener as a starting point and verify against your trusted source.
Email [email protected] with the ticker, the framework, and the calculation you believe is wrong. We respond within 24 hours from a real human.
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