{"id":6934,"date":"2022-05-31T19:54:45","date_gmt":"2022-05-31T19:54:45","guid":{"rendered":"https:\/\/ifg.local\/articles\/is-amazon-stock-halal\/"},"modified":"2023-09-21T10:04:13","modified_gmt":"2023-09-21T10:04:13","slug":"is-amazon-stock-halal","status":"publish","type":"post","link":"https:\/\/www.islamicfinanceguru.com\/articles\/is-amazon-stock-halal","title":{"rendered":"Is Amazon Stock Halal? – IslamicFinanceGuru"},"content":{"rendered":"

Stock<\/strong> \u2013 Amazon.com, Inc.<\/p>\n

<\/p>\n

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

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

Halal \u2013 <\/strong>Yes<\/p>\n

Why it\u2019s a buy \u2013 <\/strong>\u2018Big Five\u2019 company<\/p>\n

Introduction<\/h1>\n

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

Let\u2019s take a look at their financial results<\/a> for its third quarter ended September 30, 2020<\/strong>.<\/p>\n

We\u2019ll use the figures from 12 months ended Sept 30 2020 on their balance sheet, for a better overall picture.<\/p>\n

To consider if Amazon 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<\/strong> the criteria\/financial ratios in this article. If you want a detailed explanation<\/strong> 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

    Financial Highlights<\/h2>\n

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