{"id":6572,"date":"2022-05-31T19:43:22","date_gmt":"2022-05-31T19:43:22","guid":{"rendered":"https:\/\/ifg.local\/articles\/is-apple-stock-halal\/"},"modified":"2023-09-21T10:05:15","modified_gmt":"2023-09-21T10:05:15","slug":"is-apple-stock-halal","status":"publish","type":"post","link":"https:\/\/www.islamicfinanceguru.com\/articles\/is-apple-stock-halal","title":{"rendered":"Is Apple Stock Halal? – IslamicFinanceGuru"},"content":{"rendered":"

Stock<\/strong> \u2013 Apple<\/p>\n

<\/p>\n

Ticker<\/strong> \u2013 NASDAQ: AAPL<\/p>\n

Sector<\/strong> \u2013 Technology<\/p>\n

Halal \u2013 <\/strong>No, but use your own judgment (see full article)<\/p>\n

Why it\u2019s a buy \u2013 <\/strong>Substantial growth over the past 5 years<\/p>\n

Introduction<\/h1>\n

You want to buy Apple stock, but you\u2019re concerned if it is sharia compliant.<\/p>\n

Let\u2019s take a look at their financial results<\/a> for its fiscal 2020 fourth quarter ended Sept 26 2020. We\u2019ll use 12 months ended figures rather than the quarterly for a better overall picture.<\/p>\n

To consider if Apple is Shariah compliant, we will use the following criteria<\/strong> which consist of qualitative and quantitative analysis. They include three financial ratios.<\/strong><\/p>\n

    \n
  1. The business (high level is it obviously haram\/halal?)<\/li>\n
  2. Interest-bearing debt to total assets ratio<\/li>\n
  3. Illiquid assets to total assets ratio<\/li>\n<\/ol>\n

    We will only apply the criteria\/financial ratios in this article. If you want a detailed explanation of what each criteria contains, you can read our stock screening article<\/a>. We also, have a halal stock screener course<\/a> where you can access the materials anytime and it goes through step-by-step how to actually screen a stock (it helped me a lot).<\/p>\n

    We\u2019ll also use Apple\u2019s Form 10-K<\/a>. It makes an interesting read. The form is their annual report that gives a comprehensive summary of a company\u2019s financial performance.<\/p>\n

    Financial Highlights<\/h2>\n

    Before we begin our analysis, let\u2019s take a look at some of Apple\u2019s highlights.<\/p>\n

    The Fiscal 2020 Highlights<\/strong> include that total net sales increased 6% or $14.3 billion during 2020 <\/strong>compared to 2019, primarily driven by higher net sales of Services and Wearables, Home and Accessories<\/strong>. The weakness in foreign currencies had an unfavorable impact on net sales during 2020.<\/p>\n

    The graph below shows what $100 would have made you on Apple stocks compared to different indices over 5 years. Apple has outperformed them all.<\/p>\n

    \n \"graph<\/a> <\/p>\n

    What $100 of Apple stock in Sept 2015 would have made you.<\/p>\n<\/div>\n

     <\/p>\n

     <\/p>\n

    Now let\u2019s begin to apply our criteria and find out if Apple stocks are halal.<\/p>\n

    Step 1 \u2013 The business<\/h1>\n

    Net sales for 2020 were $2,745,150,000 (two billion seven hundred forty-five million one hundred fifty thousand dollars).<\/p>\n

    We need to figure out how much of this is halal.<\/p>\n

    \n \"net<\/a> <\/p>\n

    In millions. Sept 2020 figures.<\/p>\n<\/div>\n

    Their business is centred around the sales of:<\/p>\n